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34kurt
3 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]3 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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Getaway Travel Company reported net income for 2016 in the amount of $50,000. During 2016, Getaway declared and paid $2,000 in c
PSYCHO15rus [73]

Answer:

Option (B) is correct.

Explanation:

Given that,

Net income = 50,000

Preferred dividend = 2,000

Outstanding common stock:

= (40,000 × 2) + (10,000 × 6/12 × 2)

= 80,000 + 10,000

= 90,000

2016 basic earnings per share:

= (Net income - Preferred dividend) ÷ Outstanding common stock

= (50,000 - 2,000) ÷ 90,000

= 48,000 ÷ 90,000

= $0.53 per share

Therefore, the 2016 basic earnings per share is $0.53.

4 0
3 years ago
Just in time inventory involves the following main component:
matrenka [14]

Answer:

"E "

Explanation:

Just in time inventory is an inventory management system where inventory required for production are ordered at the point of production.

This practice helps to maximize profit as investment on inventory carriage and storage are minimized , aiding an improved working capital management.

It is of importance that machine break down is avoided and there is a reliability of man power in order to avoid operation down time when there is a demand.

Also , there must be a solid arrangement with supplier for it to be effective.

6 0
3 years ago
A cosmetic company manufactures products for skin and hair care for both men and women in the 20- to 50-year-old age group. Whic
meriva

Answer:

The correct answer is: Demographic.

Explanation:

To begin with, the term <em>''segmentation''</em> in the field of marketing, refers to the procedure of grouping the people into common groups according to their shared characteristics. Moreover, this procedure is done in order to make it easier for the company to understand to which market is the company addresing and who are they consumers.

To continue, there are many segmentation approaches, however the one used according to the age of the audience is the <em>''demographic segmenation''</em>, that focuses in the consumers' demographic variables such as age, sex and gender, assuming that their similar profiles will exibit similar purchasing patterns.

5 0
3 years ago
Bonita is considering changing jobs and plans to roll over the vested portion of her qualified retirement plan into either an IR
jasenka [17]

Answer:

a) II only

Explanation:

Bonita is planning to join the new company because there is an availability of getting a loan from the company. Unlike her previous employer, the new employer has different packages for employees such as retirement plans as well as the available of loans for employee. Therefore, it can be concluded that the correct option is a.

6 0
3 years ago
The term capital, as used by economists, refers to A. money B. the physical space in which production occurs C. the time allocat
miskamm [114]

Answer:

The correct answer is option E.

Explanation:

The term capital refers to the machinery and equipment that are used to produce goods and services. These things are long lasting and are not exhausted in the production process.

It is one of the four factors of production and essential for production of goods and services. It is already produced durable good.

Financial securities such as stocks and bonds are financial capital and are different from capital goods or capital assets.

7 0
3 years ago
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