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Maksim231197 [3]
3 years ago
7

Aircraft Products, a manufacturer of aircraft landing gear, makes 2,100 units each year of a special valve used in assembling on

e of its products. The unit cost of producing this valve includes variable costs of $69 and fixed costs of $55. The valves could be purchased from an outside supplier at $76 each. If the valve were purchased from the outside supplier, 40% of the total fixed costs incurred in producing this valve could be eliminated. Buying the valves from the outside supplier instead of making them would cause the company's operating income to:
Business
1 answer:
ziro4ka [17]3 years ago
4 0

Answer:

Increase by $31,500

Explanation:

Calculation to determine the operating income

First step is to calculate the Total relevant cost

DIFFERENTIAL ANALYSIS

MAKE BUY

Variable cost $144,900 $0

(2,100*$69)

Fixed cost $46,200 $0

(2,100*55*40%)

Purchase cost $0 (2100*76) = $159,600

Total relevant cost $191,100 $159,600

Now let determine the Increase or decrease of the company's operating income

Increase by =($191,100- $159,600)

Increase by = $31,500

Therefore Buying the valves from the outside supplier instead of making them would cause the company's operating income to: Increase by $31,500

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3 years ago
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The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result, a. the qu
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Answer:

d. All of the above are correct.

Explanation:

  • If the current price exceeds equilibrium price, suppliers are willing to sell more units than in equilibria conditions (Qs in the picture below) , and consumers are willing to buy less units than in equilibria conditions (Qd in the picture below), as shown in the graph that has been attached.
  • Then, quantity supplied is greater than quantity demanded (Qs>Qd).
  • Equilibrium quantity (Q* in the picture) exceeds quantity demanded at $30 price (Qd in the picture), which is related to the decreased in quantity demanded when prices increases: in equilibrium prices are lower than $30, then consumers are willing to buy more.
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8 0
3 years ago
Abbe Co. is a small merchandising company with a manual accounting system. An investigation revealed that in spite of a sufficie
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1. FALSE

2.TRUE

3. TRUE

4.TRUE

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1. It is FALSE which means each voucher should NOT be approved for payment by a designated official before verifying price, quantities, and terms because it would not reduce the chances of losing cash discount .

2. It is TRUE which means each voucher should tend to be filed by the day which will be the last day of the discount period or the due date if the invoice is not subject to a cash discount because if the voucher is filed at last day, there will be chance of losing it.

3. It is TRUE which means each day, the vouchers should be removed from the appropriate section of the file and checks issued by the disbursing official because yhis will also tend to lead to losing the cash discount for payment to the vendor.

4. It is TRUE which means at the time of payment, all vouchers and supporting documents should be stamped or perforated "Pald" because there will presentation of invoice for the second time.

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3 years ago
Key infrastructure challenges to consider when entering a foreign market include?
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transportation, communication, and energy

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