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elena-s [515]
3 years ago
12

An outside supplier has offered to make the part and sell it to the company for $29.80 each. If this offer is accepted, the supe

rvisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part U16 could be used to make more of one of the company's other products, generating an additional segment margin of $25,000 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part U16 from the outside supplier should be:
Business
1 answer:
Oxana [17]3 years ago
4 0

Answer:

-$79000  

Explanation:

The computation of the annual financial advantage (disadvantage) is shown below;

<u>Particulars                           Per unit               Total 13000 units </u>

<u>                                Make               Buy          Make                Buy</u>

Direct materials    2.90                                  37700  

Direct labor           7.50                                  97500  

Variable manufacturing

overhead               8.00                                  104000  

Supervisor's salary 3.40                                   44200  

Contribution margin                                         25000  

Purchase cost                          29.80                                  387400

Total                                                                   308400 387400

Now the finacial disadvantage is  

= 308400 - 387400

= -$79000  

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Answer:

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Which of the following statements is FALSE? A venture capital firm is a limited partnership that specializes in raising money to
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Answer:

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False Value Hardware began 2018 with a credit balance of $23,000 in the allowance for sales returns account (i.e., the estimated
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balance in sales returns account = $18200

Explanation:

given data

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to find out

balance in the allowance for sales returns account

solution

we get here estimates for returns that is

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