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matrenka [14]
2 years ago
12

Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $22, computed as fol

lows: Direct materials $ 9 Direct labor 7 Variable manufacturing overhead 1 Fixed manufacturing overhead 5 Unit product cost $ 22 An outside supplier has offered to provide the annual requirement of 7200 of the parts for only $19 each. The company estimates that 80% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:
Business
1 answer:
geniusboy [140]2 years ago
8 0

Answer:

$ 2 per unit on average

Explanation:

Calculation for what the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:

First step is to calculate the Relevant cost of making

Relevant cost of making = 9 + 7 + 1 + ( 5 * 80 % ) Relevant cost of making= $ 21

Now let calculate the Financial advantage of buying

Financial advantage of buying = ( 21 - 19 )

Financial advantage of buying= $ 2 per unit on average

Therefore the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:$ 2 per unit on average

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Answer:

Curlz should report his inventory at a Total value of $3,270

Explanation:

In reporting inventory, the market values are only used when the price of a particular commodity or product falls below the purchase value.The inventory will therefor register a loss if the price falls. However, when the market value rises above the purchase value, we use the purchase value in our inventory since the rules of accounting do not allow for anticipated profits: they can only be reported once the sale is made and the market value at that point in time is higher than the purchase value.

The inventory will include;

Initial values;

Number of bottles of Clean Z=370 bottles

Price per bottle of clean Z=$3

Number of boxes of Dye Z=270 boxes

Price per Dye Z=$10

Market values;

Price per bottle of clean Z=$3.20

Price per box of Dye Z=$8

Inventory report;

Since market value of clean Z ($3.20)is greater than its initial value ($3), then in our inventory we will use the lesser value=$3 per bottle for 370 bottles.

Additionally, since market value of dye Z ($8) is lesser than its initial value ($10), then in our inventory we will use the lesser value=$8 per box for 270 boxes

The total value of the inventory will be;

Total value=(Number of bottles of Clean Z×price per bottle of clean Z)+(Number of boxes of Dye Z×price per Dye Z)

where;

Number of bottles of Clean Z=370 bottles

price per bottle of clean Z=$3

Number of boxes of Dye Z=270 boxes

price per box of Dye Z=$8

replacing;

Total value=(370×3)+(270×8)=$3,270

Total value=$3,270

3 0
3 years ago
Suppose you are a manager of a firm that operates in a duopoly. Recently, the state attorney general fined you and your competit
postnew [5]

Answer and Explanation:

When there is price fixing between two competitors, if one competitor chooses to fix the price it should not exceed competutors marginal cost and should be above his marginal cost.

Since the price fixing of $10 will be fined then the ideal price to maximize the profit would be below the competitors price $ and above his marginal cost $.

The ideak price to maximize profits would be (competitors price $ + his marginal cost $)/2, This price would be above his marginal cost and below competitors price.

3 0
3 years ago
You have just been elected to public office and you have been informed that the government does not have money to pay all of its
slava [35]
<h3>answer:</h3>

not a.

not b.

not c.

it's d.

<h3>explanation:</h3>

Lower tax rates enable firms to invest more – this leads to higher growth and therefore, higher tax revenues

3 0
10 months ago
The cost, in dollars, to produce x designer dog leashes is C ( x ) = 8 x + 3 , and the price-demand function, in dollars per lea
Rzqust [24]

Answer:

Profit maximising price = 48

Explanation:

Total Cost : C (x) = 8x + 3

Demand Curve : p (x) = 88 − 2x

Total Revenue = p (x). x  =  x (88 - 2x) = 88x - 2x^2

Profit maximisation is where Marginal Cost (MC) = Marginal Revenue (MR)

MC = d TC / d Q  =   d (8x + 3) / d x = 8

MR = d TR / d Q = d (88x - 2x^2) / d x = 88 - 4x

Equating MR & MC ,

88 - 4x = 8  , 88 - 8 = 4x

x = 80 / 4 , x = 20

Putting value in demand curve,

p = 88 - 2x = 88 - 2 (20) = 88 - 40

p = 48

3 0
3 years ago
What is speculative risk?
Stels [109]

Answer:

A speculative risk is uncertain degree of gain or loss.                                                            Every speculative risk are made as conscious choices and are not just a result of uncontrollable circumstances.

Explanation:

It's basically a conscious choice you made!

3 0
2 years ago
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