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Svetlanka [38]
3 years ago
5

MSI is considering outsourcing the production of the handheld control module used with some of its products. The company has rec

eived a bid from Monte Legend Co. (MLC) to produce 10,000 units of the module per year for $16 each. The following information pertains to MSI’s production of the control modules:
Direct materials $9
Direct labor $4
Variable manufacturing overhead $2
Fixed manufacturing overhead $3
Total cost per unit $18
MSI has determined that it could eliminate all variable costs if the control modules were produced externally, but none of the fixed overhead is avoidable. At this time, MSI has no specific use in mind for the space that is currently dedicated to the control module production.
Compute the difference in cost between making and buying the control module.
Business
1 answer:
aleksandr82 [10.1K]3 years ago
6 0

Answer:

If the company makes the units in-house, it will save $10,000.

Explanation:

<u>The fixed costs will remain in both options. Therefore, the fixed costs are irrelevant to the decision-making process.</u>

<u></u>

Buy:

Total cost= 10,000*16= $160,000

Make in house:

Total cost= 10,000*(9 + 4 + 2)= $150,000

If the company makes the units in-house, it will save $10,000.

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From the question, we are informed that Mortgage loan originator Carol is in a hurry to leave on her vacation, and she leaves a customer's file that contains his Social Security number and bank account numbers on her desk.

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3 years ago
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The application of quantitative techniques, such as statistics and computer simulations, to management is called _____ managemen
Dafna11 [192]

Answer:

quantitative management

Explanation:

Quantitative management -

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3 years ago
Suver Corporation has a standard costing system. The following data are available for June: Actual quantity of direct materials
tatuchka [14]

Answer: $3.10

Explanation:

The actual price per pound of direct materials purchased in June will be calculated as follows:

Let the actual price be represented by x.

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20000x = 62000

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Therefore, the actual price per pound of direct material bought in June is $3.10

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3 years ago
suppose that aggregate demand is falling for several months in a row. describe how the economy will adjust in the long run.
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If aggregate demand in the long run is falling for several months in a row, it will make aggregate market results in an increase in the price level but no change in real production. The level of real production resulting from the aggregate demand shock is full-employment real production.

Aggregate demand can be described as a measurement of the total amount of demand for all finished services and goods produced in an economy. Aggregate demand is expressed as the total amount of money exchanged for those services and goods at a specific point in time and price level.

The model of aggregate demand and long-run aggregate supply predicts that the economy will eventually move toward its potential output. To see how nominal wage and price stickiness can cause real GDP to be either above or below potential in the short run, consider the response of the economy to a change in aggregate demand.

Learn more about aggregate demand in the link brainly.com/question/14375684

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