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Korvikt [17]
3 years ago
14

Refries Refrigerator Company manufactures ice-makers for installation in refrigerators. The costs per unit for 20,000 units of i

ce-makers, are as follows:
Direct materials. ....... $7
Direct labor.......... $12
Variable overhead ......$5
Fixed overhead............$10
Total costs ...................$34
Cool Compartments Inc. has offered to sell 20,000 ice-makers to Refrigerator Company for $28 per unit. If Refrigerator accepts Cool Compartments' offer, the facilities used to manufacture ice-makers could be used to produce water filtration units. Revenues from the sale of water filtration units are estimated at $80,000, with variable costs amounting to 60% of sales. In addition, $6 per unit of the fixed overhead associated with the manufacture of ice-makers could be eliminated. For Refrigerator Company to determine the most appropriate action to take in this situation, the total relevant costs of make vs. buy, respectively, are:____.
a. $600,000 vs. $560,000.
b. $648,000 vs. $528,000.
c. $600,000 vs. $528,000.
d. $680,000 vs. $440,000.
Business
1 answer:
Elis [28]3 years ago
4 0

Answer:

c. $600,000 vs. $528,000.

Explanation:

The computation of the relevant cost of make & buy is given below:

Total relevant cost of making the product is

= (cost per unit - unavoidable fixed cost per unit ) × 20,000 units

= ($34 - $4 ) × 20,000 units

= $600,000.

And, Total relevant cost of buying is

= (cost of buy per unit × 20,000 units ) - Contribution sale of water filtration = ( $28 × 20,000 units ) - ($80,000 - 60% of $80,000)

= $528,000

hence, the option c is correct

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Answer:

Owners are not required to pay it to foreign workers.

Explanation:

Owners must pay it to any worker regardless of its nationality.

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2 years ago
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The price of gold is currently $1,200 per ounce. The forward price for delivery in one year is $1,400. An arbitrageur can borrow
max2010maxim [7]

Answer:

I Dont know

Explanation:

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4 0
2 years ago
Which group of words be describes wants?
kirill [66]

Answer:

Explanation:

I'm describing the word: wants

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3 0
2 years ago
Assume that a machine has a useful life of 9 years, and it loses its real value at a constant rate (i.e. 1/9 of the original val
weeeeeb [17]

Answer:

$52,435.00

Explanation:

After 3 years the future value of 100,000 at 6 percent will be

FV = PV × (1+r)n

=FV = 100,000 x (1 +0.06)3

FV = 100,000 x 1.191016

FV = 119, 101.60

The interest will be 119, 101.60 - 100,000

=19,101.60

The depreciation over 9 year period, per year will be

=1/9  x 100,000

=11, 111.11  per year

3 year depreciation = 33,333.33( 11,111.11 x 3)

The investment must generate at least

19,101.60 + 33,333.33

=$52,434.93

=$52,435.00

7 0
2 years ago
Justin, age 52 and Jamie, age 49 live in California, are married, and file a joint return. Their combined salary for 2019 is $20
8090 [49]

Answer:

The correct answer is (e) None of the choices listed are correct.

Explanation:

Solution

Given that:

1. The Qualified dividend is the dividend taxed at capital gain tax rate and unqualified dividend taxed at individuals normal income tax rate. Therefore qualified dividend and non qualified dividend of $1500 &$500 included in gross taxable income.

2. Earned on US treasurers is exempt at state level but fully taxable at federal level. $1000 received taxable

3. State tax refund; don't report the state tax refund if didn't itemized deductions on federal tax return. Consider $1000 received as state tax refund required to be reported because of itemized deductions.

4. Section 125 of IRC specifies that cafeteria plans are exempt from calculation of gross income for federal taxation. Therefore $5000 cafeteria plan provided by employer is exempt.

5. During the year any state or local taxes paid and property taxes paid are deductible. Therefore $9000 and $3000 deductible subject to maximum $10000 of income tax and mortgage interest is $14000.

Now,

The Income is

The Salary= $200000

Add

The Qualified dividend= $1500

Non-qualified dividend =$500

Income from US treasurer $1000

State tax refund =$1000

Gross income$204000

The Less deductions.

Mortgage interest 14000

Income ans property tax is$10000

Tax able income= $ 180000

Therefore the taxable income is =$180000

8 0
3 years ago
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