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Julli [10]
3 years ago
12

Recher Corporation uses part Q89 in one of its products. The company's Accounting Department reports the following costs of prod

ucing the 9,900 units of the part that are needed every year. Per Unit Direct materials $ 6.30 Direct labor $ 3.50 Variable overhead $ 6.90 Supervisor's salary $ 2.60 Depreciation of special equipment $ 2.20 Allocated general overhead $ 1.20 An outside supplier has offered to make the part and sell it to the company for $22.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $4,000 of these allocated general overhead costs would be avoided. In addition, the space used to produce part Q89 could be used to make more of one of the company's other products, generating an additional segment margin of $16,200 per year for that product.
Required:
a. Prepare a report that shows the financial impact of buying part Q89 from the supplier rather than continuing to make it inside the company.
b. Which alternative should the company choose
Business
1 answer:
luda_lava [24]3 years ago
6 0
Yes, basically I have no Idea what you talking about. I heard that if you answer questions you can ask more. thanks.
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Zappos segments its B2B customers by sifting through the data it has collected on companies that request the free portion of its
AlladinOne [14]

Answer:

Customer Type Segmentation

Explanation:

Customer Type Segmentation is a process where a company analyzes and divides its customer base into groups following a common factor between then. For example, it could be age, residence place, monthly income, etc. In this case, Zappos is dividing its customer base into groups based on what kind of business they are in. That offers a variety of benefits, such as targeted ads, better retention strategies or a superior and personalized customer experience.

8 0
3 years ago
Retailers may use online liquidators to address the problem of ________. A) distressed inventory B) shopping cart abandonment C)
Verizon [17]

Answer:

The correct answer is the option A: distressed inventory.

Explanation:

To begin with, in the field of business management and marketing as well, the term of "distressed inventory" refers to the situation where the company has for a long time its products that are not being sell and for that reason the inventory is getting stuck in the business without obtaining profits from that situation. Therefore that in order to address that problem the marketing department alongside with the head manager should start online liquidators to increase the number of sales of those products.

4 0
3 years ago
The consumption schedule shows a.that households consume more when interest rates are low. b.that consumption depends primarily
Lelechka [254]

Answer: The consumption schedule shows the amounts households intend to consume at various possible levels of aggregate income.

Explanation: Consumption function, in economics, the relationship between consumer spending and the various factors determining it. At the household or family level, these factors may include income, wealth, expectations about the level and riskiness of future income or wealth, interest rates, age, education, and family size.

A consumption schedule is a table of numbers showing the relation between consumption expenditures and income for the household sector. The income measure commonly used is national income or disposable income. Occasionally a measure of aggregate production, such as gross domestic product, is used instead.

3 0
3 years ago
​Ernst's Electrical has a bond issue outstanding with ten years to maturity. These bonds have a​ $1,000 face​ value, a 5 percent
SVEN [57.7K]

Answer: 5.52%

Explanation:

Given the following :

Face value (f) = $1000

Bond price(p) = 96% of face value = 0.96 × 1000 = $960

Coupon rate = 5% Semi-annually = 0.05/2 = 0.025

Payment per period (C) = 0.025 × 1000 = $25

Period(n) = 10 years = 10 × 2 = 20

Semiannual Yield to maturity = [(((f-p)/n) + C) / (f + p)/2]

Semiannual YTM = [(((1000 - 960) / 20) + 25) / (1000 + 960)/2]

Semiannual Yield to maturity = [(((40 /20) + 25) / 1960/2]

= (2 + 25) / 980

= 27 / 980 = 0.02755 = 2.755% = 2.76%

Pretax cost of debt = Yield to maturity = 2 × Semiannual yield to maturity

Pretax cost of debt = 2 × 2.76% = 5.52%

8 0
3 years ago
Obviously if the model wants to upgrade the kitchen, it should be done by either the landlord or a subcontractor. As he creates
RSB [31]

Answer:

a. x3+x4<=1

Explanation:

We need a multiple choice constraint. Constraint x3+x4 <= 1 states that only one of the 2 options of landlord or contractor working on kitchen tiles can be used. (Assuming x3, x4 are binary variables)

Hence if x3 = 1, x4 is 0, and if x4=1, x3 becomes 0. Please note, there is no constraint in question specifying that kitchen tile has to be done. Hence, both x3 and x4 can be 0 depending on cost optimization, and x3+x4<=1 will still hold correct.

7 0
4 years ago
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