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34kurt
2 years ago
6

Beacon Industries,Inc. thinking about having one of its products manufactured by a subcontractor.Currently , the cost of manufac

turing 1,000 units follows :
Direct material $45,000
Direct labor 30,000
Factory overhead (30 % is variable ) 98,000

If Beacon can buy 1,000 units from a subcontractor for $ 100,000 , it should:_______
Business
1 answer:
krek1111 [17]2 years ago
3 0

Answer:

It is cheaper to buy the product.

Explanation:

Giving the following information:

Production:

Direct material $45,000

Direct labor 30,000

Factory overhead (30 % is variable ) 98,000

Buy:

Total cost= $100,000

<u>I will assume that none of the fixed overhead avoidable. Therefore, we will take into account only the variable overhead.</u>

Total variable production cost= 45,000 + 30,000 + (98,000*0.3)

Total variable production cost= $104,400

It is cheaper to buy the product.

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Investors seeking a diversified, professionally managed portfolio of securities can purchase shares of________
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Answer: Mutual funds

 

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Generally mutual funds include stock, bonds and debt. Thus, an investor seeking diversified portfolio can seek for mutual funds.

8 0
2 years ago
Asif, a member of a local baseball team, broke his bat during a practice match. With the final match scheduled for the next day,
Masja [62]

Answer:

B) click-and-collect​

Explanation:

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8 0
3 years ago
. True / False. The hedonic property value method can be used to estimate lost non-use value associated with oil pollution at re
Effectus [21]

Answer:

False.

Explanation:

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6 0
2 years ago
d needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. w
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6 0
1 year ago
The overhead costs in a highly automated factory are expected to increase at an annual compound rate of 10 percent for the next
Rzqust [24]

Answer:

The annual worth of the overhead costs for 7 year-period is

A = $389743.42.

<em>Then the time value of the annual worth is discounted by 8%</em>

∴  $389743.42 x 0.08 = $31179.47.

Explanation:

Using the formula

A = P(1 + r/n){nt}

Where:

A = ?

t = 7

P = $200,000.00

r = 10%

n= 1

TVM =8%

∴ A = $200,000.00(1 + 0.10/1){1 * 7}

A = $200,000.00(1.10){7}

A = $200,000.00(1.9487171)

A = $389743.42

<em>Then the time value of the annual worth is discounted by 8%</em>

∴  $389743.42 x 0.08 = $31179.47

8 0
3 years ago
Read 2 more answers
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