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
sasho [114]
2 years ago
10

Tide Corporation has traditionally made a subcomponent of its major product. Annual production of 30,000 subcomponents results i

n the following costs: Direct materials $ 250,000 Direct labor $ 200,000 Variable manufacturing overhead $ 190,000 Fixed manufacturing overhead $ 120,000 Tide has received an offer from an outside supplier who is willing to provide the 30,000 units of the subcomponent each year at a price of $28 per unit. Tide knows that the facilities now being used to manufacture the subcomponent could be rented to another company for $80,000 per year if the subcomponent were purchased from the outside supplier. There would be no effect of this decision on the total fixed manufacturing overhead of the company. Assume that direct labor is a variable cost. At what price per unit charged by the outside supplier would Tide be indifferent between making or buying the subcomponent
Business
1 answer:
poizon [28]2 years ago
8 0

An amount of $24 per unit will need to be charged by the outside supplier to make Tide be indifferent between making or buying the subcomponent.

Relevant cost per unit to make = (Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead) / Total sub-component unit

Relevant cost per unit to make = ($250,000 + $200,000 + $190,000 + $80,000) / 30,000 units

Relevant cost per unit to make = $24

Hence, the  indifferent price is $24 per unit

Therefore, an amount of $24 per unit will need to be charged by the outside supplier to make Tide be indifferent between making or buying the sub-component.

Read more about  indifferent price:

<em>brainly.com/question/24516871</em>

You might be interested in
Productivity is declining when: A) the number of hours worked exceeds the number of workers. B) population growth exceeds real G
SOVA2 [1]

Answer: b. When population exceeds real GDP growth

Explanation:

Gross domestic growth(GDP) is the monetary value of all finished goods and services done within in a country over a period of time. When the population of a country exceeds what it produces there would be record in decline in productivity of the country. This is a serious problem as it could lead to other factors as scarcity(having high demand and low supply), it could lead to poverty as there won't be much jobs as production is not commensurate with population.

5 0
3 years ago
Read 2 more answers
arter Company sells merchandise on account for $4,000 to Hannah Company with credit terms of 2/10, n/30. Hannah Company returns
timama [110]

Answer:

The answers are:

  • Cr Accounts receivable $4,000
  • Dr $3,332 Cash
  • Dr $68 Sales discount
  • Dr $600 returned merchandise (damaged)

Explanation:

The credit terms of 2/10, n/30 means that if Hannah Company pays within ten days, they will get a 2% discount, or they have thirty days to pay the full receipt.

Hannah's check should be for:

($4,000 - $600) x 0.98% = $3,400 x 0.98% = $3,332  

Arter Company should record the following entries:

Cr Accounts receivable $4,000

Dr $3,332 Cash

Dr $68 Sales discount

Dr $600 returned merchandise (damaged)

6 0
3 years ago
Receive 1 million in cash gift do i have to file taxes
Ierofanga [76]

Answer:

Gift tax is not an issue for most people

Explanation:

The person gifting files the gift tax return, if necessary, and pays any tax. If someone gives you more than the annual gift tax exclusion amount ($15,000 in 2020), the giver must file a gift tax return.

8 0
2 years ago
Rudy's, Inc. and Blackstone, Inc. are all-equity firms. Rudy's has 1,500 shares outstanding at a market price of $22 a share. Bl
aleksandr82 [10.1K]

Answer:

Merger premium per share is equal to $2

Explanation:

Step 1. Given information.

  • 1500 shares outstanding
  • market price of 22
  • Blackstone has 2.500 shares
  • Outstanding price 38
  • Blackstone acquire Rudy's for $36.000

Step 2. Formulas needed to solve the exercise.

Merger premium per share = (Blackstone acquire Rudy's /shares outstanding) - market price

Step 3. Calculation.

Merger premium per share = ($36,000/1,500) - $22 = $2

Step 4. Solution.

Merger premium per share is equal to $2

8 0
3 years ago
What should you do in order to make sure you don't offend or upset people from other cultures?
larisa86 [58]
The best thing to do is to learn or read up about their culture that way you won't upset them and even learn in the process. I hope this helps!
7 0
3 years ago
Read 2 more answers
Other questions:
  • Which type of cable is required by ata/66 and above?
    14·1 answer
  • As an employee of new hampshire industries, kathleen has an opportunity to invest pre-tax income in an employer-sponsored retire
    14·2 answers
  • 2. Selected data from the Carmen Company at year end are presented below: Total assets $2,000,000 Average total assets 2,200,000
    6·1 answer
  • 13. Crowd sourcing can take the place of market research.<br> True<br> O False
    11·1 answer
  • There are ___ different Bright Futures scholarships.
    15·2 answers
  • . Which of the following is not a way business markets and consumer markets differ?
    9·1 answer
  • Koehn Corporation accounts for its investment in the ordinary shares of Sells Company under the equity method. Koehn Corporation
    9·1 answer
  • Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, w
    11·1 answer
  • Knapp Industries began business on January 1, 2018 by issuing all of its 1,550,000 authorized shares of its $1 par value common
    13·1 answer
  • In a remote village, a person used five beaver pelts to buy a bag of rice and two beaver pelts to buy a pair of shoes. for what
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!