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
Lawrence has worked in his career field for 20 years. one benefit of his experience over younger employees lies in
Ad libitum [116K]
<span>Experience teaches the things which a book can not teach. Thus, having extra work experience gives an edge to the person with higher experience with person with lesser experience. Lawrence's experience is more than his younger employees hence he knows various aspects of his work profile than the youngsters.</span>
3 0
3 years ago
A Whopper combo meal costs $3.00 and gives you an additional 15 units of utility; a meal at the Embassy Suites costs $29.00 and
Olenka [21]

Answer:

be indifferent between the two meals

Explanation:

Marginal utility is the additional satisfaction received from consuming an additional unit of a good or service. Marginal utility is the additional utility derived from consuming one more unit of a good. the consumption decision is to consume more units of a good that gives the higher utility per good.

Marginal utility per good = marginal utility / price of the good

Whopper combo meal = 15 / 3 = 5

a meal at the Embassy Suites = 145 / 29 = 5

both meals have the same marginal utility of 5. She would be indifferent between consuming the two meals

8 0
3 years ago
One definition of ____ is borrowing money to make a large purchase with the
ololo11 [35]
The answer would be C. Investment
5 0
3 years ago
Read 2 more answers
T. L. Jones Trucking Services establishes a petty cash fund on April 3 for $500. By the end of April, the fund has a cash balanc
djyliett [7]

Answer:

The question is missing some figures which can be seen from the attached image.

Petty cash is a fund set aside in the office to pay minor day to day expenses incurred.Usually, an amount is made available at the beginning of period called float,from which expenses can be paid and the amount equal to spend is reimbursed at the end of the month.

In order, to make payment even more easier,some businesses take up credit cards from financial institutions,from  which expenses can be paid on account.

The balance of $415 means in petty fund,implies that $85  spent needs to be replenished at month end and that the remaining expenses were paid with credit card.

Explanation:

Find in the attached spreadsheet the entries posted in respect of petty cash and credit card expenses in the month.

5 0
3 years ago
Lucie is reviewing a project with an initial cost of $38,700 and cash inflows of $9,800, $16,400, and $21,700 for Years 1 to 3,
Alecsey [184]

Answer:

Results are below.

Explanation:

To determine whether the project should be accepted or not, we need to calculate the net present value. <u>If the NPV is positive, the project should be accepted.</u>

<u>To calculate the NPV, we will use the following formula:</u>

NPV= -Io + ∑[Cf/(1+i)^n]

Cf1= 9,800/1.0975= 8,929.38

Cf2= 16,400/1.0975^2= 13,615.54

Cf3= 21,700/1.0975^3= 16,415.20

Total= $38,960.12

NPV= -38,700 + 38,960.12

NPV= 260.12

<u>The project is profitable. </u>

5 0
3 years ago
Other questions:
  • Imagine that you are looking for a job as a interior decorator. Describe four specific ways that you could look for job leads
    14·2 answers
  • The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other orga
    6·1 answer
  • Marketing research showed that consumers in the West and the Southwest like spicier foods than those in the Southeast and East.
    7·1 answer
  • Sea Side Enterprises is trying to predict the cost associated with producing its anchors. At a production level of 5 comma 500 ​
    12·1 answer
  • A master budget​ ________. A. is only prepared for manufacturers as they are the only type of company with material purchases an
    10·1 answer
  • The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable
    12·1 answer
  • Harper Company lends Hewell Company $14,400 on March 1, accepting a four-month, 6% interest note. Harper Company prepares financ
    5·1 answer
  • On January 1, 2021, for $18.9 million, Cenotaph Company purchased 10% bonds, dated January 1, 2021, with a face amount of $20.9
    9·2 answers
  • Merone Company allocates materials handling cost to the company's two products using the below data:Modular Homes Prefab Barns T
    5·1 answer
  • Rosu Company has total current assets of $120,000 and total current liabilities of $50,000. What is the amount of working capita
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!