1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Insurance policies often contain a covenant of good faith and fair dealing. Even if the clause is not in the policy, often court
Oxana [17]

Answer:

The <em>covenant of good faith and fair dealing</em> simply requires all the parties to a contract to deal in an even-handed manner such that one party's action does not frustrate the other or prevent the other from getting the benefits of that contract.

In insurance, this covenant is sometimes captured under the heading <em>Uberrima fides</em>. This is a Latin phrase meaning <em>"Utmost Good Faith".</em>

In insurance, this covenant is legally binding on all parties to ensure they each reveal every information that is material to the acceptance or rejection of the risk (on the part of the Insurer) whilst on the part of the Insured the insurer is required to be explicit regarding the terms of the policy as well as the calculations by which the premium is arrived at.

For example, if an Insurance company is looking at covering someone under it's Life Insurance Policy, the person taking out the contract must disclose whether or not the Insured has any latent health issues which might shorten their lifespan. If there is such a condition, the Insurance company may still take on the risk albeit at a relatively higher rate than a client without such medical conditions.

 

An Insurance Company may breach this covenant if they delay or refuse to reasonable settle claims due to the Insured. It may also arise if the Insurance company by some technical manipulation intentionally under settles an Insurance claim.

If for instance, a Comprehensive Insurance Policy files a valid claim, the Insurer may be liable for negligence and or intentional wrongdoing.

Cheers!

6 0
3 years ago
The size of the multiplier which is applied to a change in AD is dependent upon the ________..
torisob [31]

Answer:

Explanation:

The multiplier is calculated by two marginal decisions by firms and individuals. A firm can decide whether to save the revenue or to consume it, therefore there is marginal propensity to consume and marginal propensity to save as options for both firms and individuals. Therefore, the size of the multiplier which is applied to a change in AD is dependent upon size of the marginal propensity to consume and marginal propensity to save.

8 0
3 years ago
Country A would have an absolute advantage compared to Country B in the production of corn if
viva [34]

Answer:

B) Country A uses fewer resources to produce corn than Country B does.

Explanation:

An absolute advantage is a situation where a country or a company can produce some goods and services using fewer inputs compared to competitors. The company can produce more quantity of using the same amount of inputs than others.  A country with an absolute advantage will manufacture a product at a lower cost than other countries or companies.  

Absolute advantage enables companies and countries to gain from trade. Through specialization, a company will focus on what it can produce at a lower cost than others, and sell it. Country A has an absolute advantage if it can produce corn at a lower cost than country B.

6 0
3 years ago
The emergency/parking brake is a hydraulic system that is automatically activated when the driver depresses the service brake pe
GrogVix [38]

False for sure you don't immediately stop when you let off the brake pedal.
6 0
3 years ago
Read 2 more answers
Assume that the linear equation for consumption in a closed economy is C = 40 + 0.8Y. Also, assume that income (Y) is RM400 mill
Gekata [30.6K]

A) the marginal propensity to save is the number associated with y which is 0.8

B) the marginal propensity to save is 1-0.8 = 0.2

C) replace y with the 400 and solve: c = 40 + 0.8(400) = $360

D) Average propensity to consume = 360/400 = 0.9

E) 400-360 = $40

F) 40/400 = 0.1

7 0
3 years ago
Read 2 more answers
Other questions:
  • The employees of Wingim Corp. were unhappy with the new policies that were introduced by the management, so they decided to rebe
    8·1 answer
  • Which of the following are considered characteristics of money? I. Portable II. Uniform III. Divisible IV. Acceptable a. I and I
    12·1 answer
  • One of the unique problems that banks face is: A. they hold illiquid assets to meet liquid liabilities. B. they hold liquid asse
    13·1 answer
  • Which of the following ia a good question to ask during an informational interview
    11·2 answers
  • Forâ April, Anderson Antiques will have cash receipts ofâ $365,000 and cash disbursements ofâ $370,000. If its beginning cash is
    15·1 answer
  • Dahia comes to the conclusion while reviewing her presentation that she has left out key information in order to shed a better l
    11·2 answers
  • A firm presents a market value balance sheet and a book value balance sheet to prospective investors. What is wrong with using t
    5·1 answer
  • To better evaluate the denials of Medicare claims at ABC Hospital, Shelly (the Coding Manager) and
    5·1 answer
  • First job interview tips / advice - 20 pts
    13·1 answer
  • Open this link to read more about how credit card interest works. Use this information to calculate the cost of your computer wh
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!