Answer:
financial advantage of purchasing from outside vendor = $36,000
Explanation:
outside vendor offers 18,000 units at $40 per unit = $720,000
current production costs (for 18,000 units):
- Direct materials $324,000
- Direct labor $162,000
- Variable manufacturing overhead $36,000
- Fixed manufacturing overhead, traceable $162,000 ($54,000 avoidable)
- Fixed manufacturing overhead, allocated $216,000 (not avoidable)
- Total cost $900,000
total avoidable costs = $576,000
additional revenue generated by freed facilities = $180,000
financial advantage of purchasing from outside vendor = ($576,000 + $180,000) - $720,000 = $36,000
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Total actual utilisation = 1,710 unit
Explanation:
Given:
Design capacity = 1,900 units
Effective capacity = 90%
Actual output = 1,500 units
Total utilisation = ?
Computation of Actual unit utilise:
Total actual utilisation = Design capacity x Effective capacity
Total actual utilisation = 1,900 x 90%
Total actual utilisation = 1,900 x 0.9
Total actual utilisation = 1,710 unit
Answer:
The maintenance call will be for:
$20,000.
Explanation:
Operating a margin account means that the investor is permitted by her brokerage firm to buy securities with borrowed funds (or the broker's funds). The maintenance call is the requirement made on the investor with this margin account (by her broker) to raise additional funds to ensure that the margin account is fully funded when it has reduced in value. The investor with the above margin account is supposed to have a credit balance (equity) of $24,000.
