Homework Answers
Unavoidable cost (fixed cost) should not be considered in the process of decision making.
Unit cost of making = DM + DL + Variable overhead
= 25 + 25 + 14
= 64
Unit cost of supplying = Supplier’s price
= 76
Profit = (Unit cost of making - Unit cost of supplying) × Units
= (64 – 76) × 12,900
= - 12 × 12,900
= - 154,800
Since profit becomes negative, it decreases actually.
Answer: 3rd option
Add Answer to:
Cotton Corp. currently makes 12,900 subcomponents a year in one of its factories. The unit costs...
Cotton Corp. currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: Direct...
Cotton Corp. currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $ 32.50 13.00 19.50 26.00 $ 91.00 An outside supplier has offered to provide Cotton Corp. with the 10,000 subcomponents at a $84.50 per unit price. Fixed overhead is not avoidable. What is the maximum price Cotton Corp. should pay the outside supplier? $65.00 $84.50 $91.00...
Olive Corp. currently makes 20,000 subcomponents a year in one of its factories. The unit costs...
Olive Corp. currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unit $ 12 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost 0000 40 An outside supplier has offered to provide Olive Corp. with the 20,000 subcomponents at a $36 per unit price. Fixed overhead is not avoidable. If Olive Corp. accepts the outside offer, what will be the effect on short-term profits? $160,000 decrease $320,000...
Murray Corp. currently makes 5,850 subcomponents a year in one of its factories. The unit costs...
Murray Corp. currently makes 5,850 subcomponents a year in one of its factories. The unit costs to produce are: Description Per unit Direct materials $7 Direct labor 2 Variable manufacturing overhead 1 Fixed manufacturing overhead 2 An outside supplier has offered to provide Murray Corp. with the 5,850 subcomponents at a $15 per unit price. Fixed overhead is not avoidable. What is the maximum price Murray Corp. should pay the outside supplier?
Murray Corp. currently makes 9,230 subcomponents a year in one of its factories. The unit costs...
Murray Corp. currently makes 9,230 subcomponents a year in one of its factories. The unit costs to produce are: Description Per unit Direct materials $6 Direct labor 2 Variable manufacturing overhead 2 Fixed manufacturing overhead 3 An outside supplier has offered to provide Murray Corp. with the 9,230 subcomponents at a $15 per unit price. Fixed overhead is not avoidable. If Murray Corp. decides to buy from the outside supplier, the impact to net income will be ? If positive,...
i think these are the answers but im not 100% sure. therefore please write an explanantion...
i think these are the answers but im not 100% sure. therefore
please write an explanantion on what the correct answer is:)
54) Cotton Corp.currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unit Direct materials $32.50 Direct labor 13.00 Variable manufacturing overhead 19.50 Fixed manufacturing overhead 26.00 Total unit cost $91.00 An outside supplier has offered to provide Cotton Corp with the 10,000 subcomponents at a $84.50 per unit price....
Situation One Rutro Corp. makes 59,000 units per year of a part it uses in the...
Situation One Rutro Corp. makes 59,000 units per year of a part it uses in the products it manufactures- The unit product cost of this part is computed as follows: Direct material $21.00 Direct labor 23.00 8.00 Variable manufacturing overhead Fixed manufacturing overhead Unit product cost 30.00 $82.00 An outside supplier has offered to sell the company all of the 59,000 parts it needs for $75.00 a unit. If the company accepts this offer, the facilities now being used to...
Supler Corporation produces a part used in the manufacture of one of its products. The unit...
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $17, computed as follows: Direct materials $ 6 Direct labor 3 Variable manufacturing overhead 3 Fixed manufacturing overhead 5 Unit product cost $ 17 An outside supplier has offered to provide the annual requirement of 7,800 of the parts for only $11 each. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts...
Supler Corporation produces a part used in the manufacture of one of its products. The unit...
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $23, computed as follows: $ 8 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 1 6 $23 Unit product cost An outside supplier has offered to provide the annual requirement of 4,700 of the parts for only $10 each. The company estimates that 50% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased...
Supler Corporation produces a part used In the manufacture of one of its products. The unit...
Supler Corporation produces a part used In the manufacture of one of its products. The unit product cost is $22, computed as follows: al. Variable nanufacturirg overhead 1 Fixed nanufacturing overhead tUnit product cost 22 An outside supplier has offered to provide the annual requirement of 7,000 of the parts for only $16 each. The company estimates that 50 % of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume...
Supler Corporation produces a part used in the manufacture of one of its products. The unit...
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $22, computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost 1 An outside supplier has offered to provide the annual requirement of 7,200 of the parts for only $19 each. The company estimates that 80% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier....
Cotton Corp. currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $ 32.50 13.00 19.50 26.00 $ 91.00 An outside supplier has offered to provide Cotton Corp. with the 10,000 subcomponents at a $84.50 per unit price. Fixed overhead is not avoidable. What is the maximum price Cotton Corp. should pay the outside supplier? $65.00 $84.50 $91.00...
Olive Corp. currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unit $ 12 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost 0000 40 An outside supplier has offered to provide Olive Corp. with the 20,000 subcomponents at a $36 per unit price. Fixed overhead is not avoidable. If Olive Corp. accepts the outside offer, what will be the effect on short-term profits? $160,000 decrease $320,000...
i think these are the answers but im not 100% sure. therefore
please write an explanantion on what the correct answer is:)
54) Cotton Corp.currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unit Direct materials $32.50 Direct labor 13.00 Variable manufacturing overhead 19.50 Fixed manufacturing overhead 26.00 Total unit cost $91.00 An outside supplier has offered to provide Cotton Corp with the 10,000 subcomponents at a $84.50 per unit price....
Situation One Rutro Corp. makes 59,000 units per year of a part it uses in the products it manufactures- The unit product cost of this part is computed as follows: Direct material $21.00 Direct labor 23.00 8.00 Variable manufacturing overhead Fixed manufacturing overhead Unit product cost 30.00 $82.00 An outside supplier has offered to sell the company all of the 59,000 parts it needs for $75.00 a unit. If the company accepts this offer, the facilities now being used to...
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $23, computed as follows: $ 8 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 1 6 $23 Unit product cost An outside supplier has offered to provide the annual requirement of 4,700 of the parts for only $10 each. The company estimates that 50% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased...
Supler Corporation produces a part used In the manufacture of one of its products. The unit product cost is $22, computed as follows: al. Variable nanufacturirg overhead 1 Fixed nanufacturing overhead tUnit product cost 22 An outside supplier has offered to provide the annual requirement of 7,000 of the parts for only $16 each. The company estimates that 50 % of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume...
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $22, computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost 1 An outside supplier has offered to provide the annual requirement of 7,200 of the parts for only $19 each. The company estimates that 80% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier....
Most questions answered within 3 hours.
-
Living in a group could bring several disadvantages to an
individual. What are some of the...
asked 12 minutes ago -
Complete and balance the following reactions. In case of no
reaction occurring write NR.
Mix #1:...
asked 18 minutes ago -
If an economy consumes 75% of any increase in income, then an
increase in autonomous investment...
asked 21 minutes ago -
A shotputter throws the shot with an initial speed of 15.8 m/s
at a 38.0 ∘...
asked 37 minutes ago -
Debra and Merina sell electronic equipment and supplies through
their partnership. They wish to expand their...
asked 37 minutes ago -
How does a linear regression allow you to better estimate
trends, costs, and other factors in...
asked 45 minutes ago -
1. (15%) Describe the difference between a pull (Kanban), push
and CONWIP production systems.
asked 42 minutes ago -
QUESTION 5
The total area under the Z distribution curve is equal to:
a.
10
b....
asked 51 minutes ago -
Using Python
The variables x and y refer to numbers. Write a code segment
that prompts...
asked 1 hour ago -
If
the coefficient of static friction between a box and the floor is
0.35 with what...
asked 1 hour ago -
A die is designed to punch holes with a radius of 1.08 10-2 m in
a...
asked 1 hour ago -
government can increase import through
a. export subsidies
b. tax breaks
c. increase import tax
d....
asked 1 hour ago