1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kow [346]
3 years ago
5

Coed Scents, a national producer of young adult perfumes and colognes, needs to determine if it would be cheaper to produce 100,

000 bottles of its most popular perfume, Two AM, for sale in its college town shops or to purchase them from an outside supplier for $25 each. Cost information on internal production includes the following:
Total Cost Unit Cost
Direct materials $2,000,000 $ 20.00
Direct labor 350,000 3.50
Variable manufacturing overhead 150,000 1.50
Variable marketing overhead 250,000 2.50
Fixed plant overhead 300,000 3.00
Total $3,050,000 $30.50
Fixed overhead will continue whether Two AM is produced internally or externally. No additional costs of purchasing will be incurred beyond the purchase price.
Required:
1. What are the alternatives for Coed Scents?
2. List the relevant cost(s) of internal production and of external purchase.
3. Which alternative is more cost effective?
By how much?
$
4. Now assume that Coed Scents’ internal audit team learned through a special data analytics project that intellectual property theft is a significant threat for outsourced production. The team estimates that if Coed Scents outsources its production, it will need to spend $350,000 to manage intellectual property theft of its Two AM brand by competitors operating in the country where the outsourced production occurs. Which alternative is more cost effective?
By how much?
$
Business
1 answer:
melisa1 [442]3 years ago
5 0

Answer:

Coed Scents

1. The alternatives for Coed Scents are to reduce cost of internal production or to renegotiate the external purchase price.

2. Relevant costs                                            Internal                External

                                               Total Cost Unit   Cost

Direct materials                          $2,000,000   $20.00

Direct labor                                      350,000        3.50

Variable manufacturing overhead  150,000         1.50

Total cost                                   $2,500,000   $25.00   $2,500,000 $25.00

3. No alternative is more cost-effective.  However, Coed Scents can reduce cost of internal production (materials, labor, and variable overhead).

4. Internal production becomes more cost-effective with this additional costs from outsourced production.  

The cost-effectiveness amounts to $350,000.

Explanation:

a) Data and Calculations:

Production units of Two AM = 100,000 bottles

Purchase price of outside supplier = $25

                                                  Total Cost Unit   Cost

Direct materials                          $2,000,000  $ 20.00

Direct labor                                      350,000        3.50

Variable manufacturing overhead  150,000         1.50

Variable marketing overhead        250,000        2.50

Fixed plant overhead                     300,000        3.00

Total                                          $3,050,000    $30.50

Relevant costs                                            Internal                External

                                               Total Cost Unit   Cost

Direct materials                          $2,000,000   $20.00

Direct labor                                      350,000        3.50

Variable manufacturing overhead  150,000         1.50

Total cost                                   $2,500,000   $25.00   $2,500,000 $25.00

You might be interested in
Country A had a population of 2,000, of whom 1,300 worked an average of 8 hours a day and had a productivity of 5. Country B had
SpyIntel [72]

Answer:

Country

  • c. B had the higher level of real GDP and Country A had the higher level of real GDP per person

Explanation:

Country A's population 2,000, worked 1,300 with 8 hours a day with a productivity of 5 = 52,000 units of something produced. GDP per capita = 52,000 / 2,000 = <u>26 per capita</u>

Country B's population 2,500, worked 1,700 with 8 hours a day with a productivity of 4 = <u>54,400 units</u> of something produced. GDP per capita = 54,400 / 2,500 = 21.76 per capita

3 0
2 years ago
What does the prefix re mean in the word reunited?
sukhopar [10]

Answer:

b. Again

Explanation:

8 0
3 years ago
Read 2 more answers
I need brainliest answer if anyone needs help comment the link here
zalisa [80]
  • <em><u>Heya friend,</u></em>
  • <em><u>Good question!</u></em>
  • <em><u>Well, brainly is a great educational platform with so many talented and kind people. We have a great community too of brainly stars, benefactors, moderators. We together do everything to make brainly great and we all have a great bonding among ourselves. We love each other a lot, brainly Benefactor team and star team and moderator team is my family type. We all live under one roof and we do help each other.</u></em>
  • <em><u>To be honest, I never felt that I am a moderator at brainly, I never felt that brainly is just an educational site. Brainly is a friendly site. A love site. A great family. Brainly has became my family,and I do love them.</u></em>
  • <em><u>Now, over to your questions-</u></em>
  • <em><u>1)We should talk to brainly members kindly, lovingly for sure. We should have a spirit of respectness, lovingneess. We should always try to be like a wise person. We should always talks politely to them. No matters on what position he is, we should just see that we are a good user and we have to form a good impression among everyone. Always try to talk something wise, funny, interesting.</u></em>
  • <em><u>2)Yeah, we should give respect to not only Leaders, benefactors, moderators. To each user we should give respect. If you will respect everyone, one will give u respect. We all say-</u></em>
  • <em><u>"TAKE RESPECT, GIVE RESPECT"</u></em>
  • <em><u>Talk to everyone respectively, then only you will be loved by others, if you will talk harshly and will Bose up yourself. No one will love you, all will hate you or will not like to talk to you. </u></em>
  • <em><u>Give respect to everyone. Understand what others want to say, then take decisions wisely and have a sweet relationship with them.</u></em>
  • <em><u>3)Yeah , we should respect others people words. What leaders, moderators, benefactor,stars says is all about your benifit, they want to make each user a good one and brainly indeed. They want you too to have a rank in brainly, a respect in brainly, a family. They do all for you, not for themselves. They got what they want, and they try to give you what you want. If you will do what you want, you will never be able to success, because in every road of life, one needs assistance and guidance. And we are here to guide you, you should respect our tips. You should come up with your doubts kindly and understand what other wanna talk to you and then take decisions wisely and patiently, always remember we do everything for each users benifit.</u></em>
  • <em><u>Love brainly! Respect brainly!</u></em>
  • <em><u>#BeBrainly</u></em>
  • <em><u>#Together we go far!</u></em>
  • <em><u>Hope it helps..!!!!</u></em>
  • <em><u>Read more on Brainly.in - https://brainly.in/question/1404139#readmor</u></em>e
3 0
3 years ago
A nation's long-run growth rate is equal to the sum of: Group of answer choices labor force growth and capital growth. growth in
jonny [76]

Answer:

labor force growth and productivity growth.

Explanation:

A country's long run growth rate is generally calculated by adding the increases in the market value of the goods and services produced within a country during a period of time. It is generally stated as a percentage growth of real GDP.

The real GDP's growth rate is determined by two factors: labor force growth and productivity growth. So it is determined by the growth in productivity, demographic growth and labor force participation.

7 0
3 years ago
A key determinant of the price elasticity of supply is the
alina1380 [7]

Answer:

The ability of sellers to change the amount of the good they produce.

Explanation:

Price elasticity of supply: It is an economic measure to check the responsiveness of quantity supplied to the change of price. As per the law of supply, the supply of quantity increases with the increase in the price of goods and services and vice versa. The numerical value of elasticity indicates how is the response of quantity supplied to the price of the product. As zero indicates no response to the change in price and 1 indicate a higher response to the price of the product.

The key determinant of the price elasticity of supply is how well the seller is able to change the quantity supplied as per the price in the market.

8 0
3 years ago
Other questions:
  • What is the term used to describe the impact of the manufacturing process on the entire economy?
    15·1 answer
  • When her income increased from $10,000 to $20,000, Heather's consumption of macaroni decreased from 10 pounds to 5 pounds and he
    9·1 answer
  • Why is hazard city at more risk for lahars than hutton or wrightstown, even though they are closer to lava mountain than hazard
    13·1 answer
  • The purchase of equipment financed by a​ long-term notes payable is an example of​ ________.
    12·1 answer
  • After the World Cup soccer games, Puma, the German sporting goods manufacturer, increased its end-of-year sales target by $641 m
    9·1 answer
  • G two firms, firm x and firm y, are both considering investing in project z, which has an irr of 10.60%and a beta of 0.9. firm x
    7·1 answer
  • A manufacturing company hit by a slump in demand is experiencing a labor surplus. The company expects the market to improve in s
    6·1 answer
  • The ______is a financial statement detailing a firm's assets, liabilities, and owners' equity.
    9·1 answer
  • What is an origination fee on a loan?
    6·1 answer
  • For the fed there must be a _____________ between maintaining banking stability for the nation and allowing individual banks to
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!