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deff fn [24]
3 years ago
8

10. Ahron Company makes 8,000 units per year of a part it uses in the products it manufactures. The unit product cost of this pa

rt is computed as follows: An outside supplier has offered to sell the company all of the units it needs. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $161,600 per year. If the part were purchased from the outside supplier, $7.50 of the fixed manufacturing overhead cost being applied to the part would be eliminated. What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 8,000 units required each year
Business
1 answer:
madreJ [45]3 years ago
8 0

Answer:

$62

Explanation:

The computation of the maximum amount that should be willing to pay per unit is as follows:

The Relevant costs for decision making is

= Avoidable Costs + Opportunity Costs

where,

Total Avoidable Cost = Total Units Needed × ( Direct Materials + Direct Labor + Variable Manufacturing Overhead + Avoidable Fixed Manufacturing Overhead )

= 8,000 ×  ($14.90 + $17.50 + $1.90 + $7.50)

= $334,400.

And,  the Total Opportunity Costs of Making is $161,600.

Now

Total Relevant Costs is

= $334,400 + $161,600

= $496,000.

So, the maximum per unit would be

= $496,000 ÷ 8,000

= $62

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tatuchka [14]

Answer:

The correct answer is flex-plans.

Explanation:

These plans allow employees to choose the benefits they prefer or want, instead of being selected by the organization's administration. In this way the employee adapts the benefits package to his needs. For example, an employee in the manufacturing area who has great concern for his well-being or health, might prefer the benefit of additional life insurance.

In short there are many alternative benefits for which they can opt.

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For employees, flexibility can be attractive, since in this way they can design their benefits and coverage levels based on their own requirements, therefore, in this sense, benefit plans become an advantage for them.

7 0
3 years ago
On January 1 of the current year, Barton Corporation issued 10% bonds with a face value of $200,000. The bonds are sold for $191
Verdich [7]

Answer:

a. $21,800

Explanation:

The discoun of issuance of the bond is amortized over the period until maturity. Total Interest expesne on a discounted bond is the sum of the coupon payment and the amortization of the discount amount.

Coupon payment = $200,000 x 10% = $20,000 per year

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Discount amotized per year = $9,000 / 5 = $1,800

Total Interest Expense = Coupon Payment + Amortization of Discount

Total Interest Expense = 20,000 + 1800 = $21,800

5 0
3 years ago
It is early in the year, and Keesha would like to start saving money for next year’s holiday presents. What type of account shou
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3 years ago
Morris Company applies overhead at 20% of direct labor costs. Actual overhead costs for the year totaled $380,000, and actual di
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Answer:

$20,000 debit balance

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absorbed overhead as a percentage of labor costs=20%*$1,800,000=$360,000

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balance in factory overhead account=$380,000-$360,000=$20,000

The balance in factory overhead account is $20,000 debit balance since the amount absorbed is less than actual,an additional cost of $20,000 needs to be recognized

3 0
3 years ago
Which of the following is true about avoiding discrimination?
Ivan

If preventing discrimination would cause undue hardship, reasonable accommodations will be made. The correct response to the question is option (d).

<h3>What is discrimination?</h3>

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Discrimination typically takes four different forms:

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8 0
1 year ago
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