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iren2701 [21]
3 years ago
15

A manufacturing firm has an annual demand of 300,000 units. Using its current operation, the firm pays $800,000 in annual fixed

costs and $15.00 per unit in variable costs. A potential outsourcing provider has offered to produce the product for the manufacturer. Annual fixed costs would drop to $200,000, but variable costs would increase to $18.00 per unit. Based on this information, what should the manufacturer do
Business
1 answer:
Elodia [21]3 years ago
5 0

Answer:

It is cheaper to make the units in-house by $300,000.-

Explanation:

<u>First, we need to calculate the total avoidable production costs of making 300,000 units:</u>

Total variable cost= 300,000*15= $4,500,000

Total avoidable fixed cost= 800,000 - 200,000= $600,000

Total production cost= $5,100,000

<u>Now, the total differential cost of buying:</u>

<u></u>

Cost of buying= 300,000*18= $5,400,000

It is cheaper to make the units in-house.

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Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at
Advocard [28]

Answer:

$8,588

Explanation:

income tax brackets 2019

tax rate         income

10%       $0 to $19,400

12%       $19,401 to $78,950

total ordinary income = $64,200 + $33,500 + $1,500 = $99,200

taxable ordinary income = $99,200 - $24,400 = $74,800

tax liability = ($19,400 x 10%) + ($55,400 x 12%) = $1,940 + $6,648 = $8,588

long term capital gains = $13,200 - $10,100 = $3,100

since their total taxable income is below $78,750, their long term capital gains tax rate is 0.

total tax liability = $8,588

6 0
3 years ago
Suppose, you have $20,000 in your account. You receive a monthly
Setler [38]

Answer:

According to the data provided the opportunity costs is detailed below:

Initial Balance  $20,000

Monthly interst      $200

Investment             $500

________________________

The Opportunity cost is $500

Explanation:

The opportunity cost is the price you pay for not choosing best second alternative when you make a decision. In this case the person has three options:

1. Spending the money  

2. Save the money

3.     Invest the money

Once the money is spent the opportunity costs is generated and it is measured by the interest rate lost for not keeping the money in the investment that will generate an interest rate of $500 monthly.

3 0
3 years ago
The capital gains yield equals _________
Arlecino [84]

Answer:

Appreciation in Investment Value = Percentage rise in value of investment

Explanation:

Capital Gain yield equals the appreciation in an investment's price. It is measured as percentage change over the original investment acquisition value.

Capital Gain Yield = Percentage (%) rise in value of an investment

= ( Rise in Value of Investment / Original Value of investment ) x 100

Eg : If a security purchased for 100 is now for 125 ;

Capital Gain Yield = (25 / 100) x 100

=  25%

7 0
3 years ago
The ____ flow of information needed from the CSIRT to organizational and IT/InfoSec management is a critical communication requi
Softa [21]

Answer:

The answer to this question is Upward.

Explanation:

CSIRT is at lower level then the organizational and IT/infoSec management in the hierarchical structure.

So if the CSIRT sends some information to organizational and IT/infoSec the flow should be considered as upward flow.

Hence we that the answer to this question is upward.

7 0
3 years ago
Oriole Company purchased equipment for $41600. Sales tax on the purchase was $2496. Other costs incurred were freight charges of
Aleksandr [31]

Answer:

The cost of the equipment is <u>$45,416</u>.

Explanation:

The cost of a newly purchased equipment is the addition of all relevant costs uncured in order to make the equipment ready for use.

The cost of the equipment includes costs such as purchase price, tax paid on the purchase, installation costs, etc.

However, any cost incurred to repair any damage to an equipment during installation is not part of equipment cost. Such repair costs are just ordinary expenses that are charged to the income statement during the period.

Based on the explanation above, the cost of the equipment by Oriole Company can be calculated as follows:

Equipment cost = Purchase price + Sales tax + Freight charges + Installation costs ..................... (1)

Since,

Purchase price = $41,600

Sales tax on the purchase = $2.496.

Freight charges = $624

Installation costs = $696.

Substituting the values into equation (1), we have:

Equipment cost = $41,600 + $2,496 + $624 + $696 = $45,416

Therefore, the cost of the equipment is <u>$45,416</u>.

5 0
3 years ago
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