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tensa zangetsu [6.8K]
2 years ago
8

Han Products manufactures 29,000 units of part S-6 each year for use on its production line. At this level of activity, the cost

per unit for part S-6 is:
Direct materials $3.70
Direct labor 12.00
Variable manufacturing overhead 2.30
Fixed manufacturing overhead 9.00
Total cost per part $27.00

An outside supplier has offered to sell 29,000 units of part S-6 each year to Han Products for $23 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $79,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier.

Required:
What is the financial advantage (disadvantage) of accepting the outside supplier’s offer?
Business
1 answer:
Yanka [14]2 years ago
5 0

Answer:

Financial advantage of accepting supplier's offer = $21,000

Explanation:

Relevant costs saved by outsourcing production:

Direct materials $3.70

Direct labor $12.00

Variable manufacturing overhead $2.30

Fixed manufacturing overhead $9.00 * 1/3 = $3

Total cost per part $21.00

Total savings per year = $21 * 29,000 = $609,000

Additional rental income = $79,000

Total = $688,000

Cost of purchasing 29,000 parts = $23 * 29,000 = $667,000

Financial advantage of accepting supplier's offer = $21,000

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Mekhanik [1.2K]
Both A and B so answer C.
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3 years ago
Yolanda has osteoarthritis of the left knee for which she is receiving acetaminophen 1000mg every six hours. She rates her pain
cupoosta [38]

Answer:

The correct answer is True.

Explanation:

Osteoarthritis is the most common form of arthritis and affects millions of people worldwide. It occurs when the protective cartilage that cushions the ends of the bones wears out over time.

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3 years ago
​Peeler's Smoothie Company has provided the following​ information: Sales price per unit $ 6.50 Variable cost per unit $ 2.00 Fi
ra1l [238]

Answer:

Contribution margin ratio = 69.23%

Explanation:

We know,

Contribution margin ratio = (Contribution Margin per unit ÷ Sales per unit) × 100

Again, we know, Contribution margin per unit = Sales per unit - Variable cost per unit

Given,

Sales price per unit = $6.50

Variable cost per unit = $2.00

Therefore, Contribution margin per unit = $6.50 - $2.00 = $4.50

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Contribution margin ratio = ($4.50 ÷ $6.50) × 100 = 69.23% (Rounded to two decimal places)

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3 years ago
Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common
notka56 [123]

Answer:

Power Drive Corporation

Journal Entries:

March 1:

Debit Cash Account with $2,548,000

Credit Common Stock with $52,000

Credit APIC - Common Stock with $2,496,000

To record issue of 52,000 additional shares of $1 par value common stock for $49 per share.

May 10:

Debit Treasury Stock with $4,700

Debit APIC - Common Stock with $239,700

Credit Cash Account with 244,400

To record repurchase of 4,700 shares of treasury stock for $52 per share.

June 1:

Debit Dividends- Common Stock with $198,855

Credit Dividends Payable with $198,855

To record cash dividend of $1.35 per share declared (147,300 shares).

June 15:

No records required

July 1:

Debit Dividends Payable with $198,855

Credit Cash Account with $198,855

To record payment of cash dividend.

October 21:

Debit Cash Account with $133,950

Credit Treasury Stock with $2,350

Credit APIC - Common Stock with $131,600

To record reissue of treasury stock for $57 per share.

Explanation:

1. Issue of 52,000 additional shares results to a credit to the Common Stock account with 52,000 x $1 par value.  This is equal to $52,000.  The additional $48 x 52,000 goes to the Additional Paid-in Capital.

2. Treasury stock is the repurchase of outstanding stock by the company.  When repurchase at more than the par value, the difference is a debit to the Additional Paid-in Capital account, when the par value method is adopted.  The other method, which records the whole costs in the Treasury Stock account is the cost method.  Remember that the Treasury Stock account is a contra account to the Common Stock account.

3. Dividends are payable on outstanding stock.  The outstanding stock on June 1 to June 15 is calculated as follows:

Opening balance = 100,000 shares

New issue = 52,000 shares

less Treasury = (4,700)

Total = 147,300 shares

Dividends are then payable on 147,300 shares at $1.35 per share.  This gives a total of $198,855.

4. The resale of Treasury stock reduces the balance of the treasury stock account at par value and increases the Additional Paid-in Capital account with the premium.

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what a successful entrepreneur's profile is and to determine whether your personal characteristics fit that profile. I
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Answer:

Explanation:

A successful entrepreneur’s profile is characterized of the following:  

1) Self-control: this is the belief that you can do a certain job better than others in the most accountable and responsible manner.

2) Self-confidence: it refers to the never-ending spirit of urgency to develop ideas

3) Realism: it refers to the acceptance of the things as they occur and dealing with them cautiously.  

4) Conceptual capability: it refers to an entrepreneur’s ability to recognize relationships swiftly even in the midst of difficult situations.  

5) Comprehensive awareness: it refers to the ability to understand complicated situations through planning, strategic decision making, and pursuing multiple business ideas concurrently.  

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