Homework Answers
| Answer | |
| The option A is correct : $3,14,000 | |
| Explanation | |
| Saving in Variable cost | $ 6,00,000 |
| Opportunity cost ( rent income ) | $ 1,64,000 |
| $ 7,64,000 | |
| Purchases cost from outsider | $ 4,50,000 |
| Increase in net income | $ 3,14,000 |
| Please like ( Positive rating ) | |
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Multiple Choice Question 82 Bonita Industries has the following costs when producing 100000 units: Variable costs...
Madison Company has the following costs when producing 100,000 units: Variable costs $600,000 Fixed costs 900,000 A...
Madison Company has the following costs when producing 100,000 units: Variable costs $600,000 Fixed costs 900,000 An outside supplier has offered to make the item at $4.50 per unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $165,000. What is the net increase (decrease) in the net income of accepting the supplier's offer and buying the item at $4.50 per unit? A) $(15,000). B) $285,000. C) $840,000. D)...
Sheridan Company can stall the units it can produce of esther Plain or Fancy but not...
Sheridan Company can stall the units it can produce of esther Plain or Fancy but not both Plain has a unit contribution margin of $50 and takes two machine hours to make and Fancy has a unit contribution margin of $51 and takes three machine hours to make. There are 2400 machine hours available to manufacture a product. What should Sheridan do? Make Plain which creates $ more profit per machine hour than Fancy does Make Fancy which creates $24...
21 A company has the following costs when producing 100,000 units: Variable costs $480,000 Fixed costs...
21 A company has the following costs when producing 100,000 units: Variable costs $480,000 Fixed costs $700,000 A supplier is interested in producing the item. If the item is produced outside, the company could use the released production facilities to make another item that would generate $110,000 of net income. The fixed costs are unavoidable. At which unit price should the company accept the supplier's ofer? $5.70 e $7.00 O $8.90 NEXT > BOOKMARK CLEAR
Multiple Choice Question 133 Bonita Industries has fixed costs of $550000 and variable costs are 80%...
Multiple Choice Question 133 Bonita Industries has fixed costs of $550000 and variable costs are 80% of sales. How much will Bonita report as sales when its net income equals $55000? O $3025000 O $484000 O $756250 O $2805000
Multiple Choice Question 77 Marigold Corp. incurs the following costs to produce 10100 units of a subcomponent: Dir...
Multiple Choice Question 77 Marigold Corp. incurs the following costs to produce 10100 units of a subcomponent: Direct materials Direct labor Variable overhead Foxed overhead $8484 11413 12726 16200 An outside supplier has offered to sell Marigold the subcomponent for $2.85 a unit If Marigold could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by $838 $(5929) $(3364) $6838
Item 151 is used in one of Policy Corporation's products. The company makes 21,600 units of...
Item 151 is used in one of Policy Corporation's products. The company makes 21,600 units of this item each year. The company's Accounting Department reports the following costs of producing Item 151 at this level of activity: Direct materials Direct labor Variable manufacturing overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $2.10 $3.10 $4.20 $1.90 $3.60 $9.40 An outside supplier has offered to produce Item 151 and sell it to the company for $19.40 each. If...
PLUS e pen Assignment e: 07104 PM SOURCES Multiple Choice Question 77 Vaughn Manufacturing incurs the...
PLUS e pen Assignment e: 07104 PM SOURCES Multiple Choice Question 77 Vaughn Manufacturing incurs the following costs to produce 10800 units of a subcomponent: Direct materials Direct labor Variable overhead 13608 Flxed overhead An outside supplier has offered to sell Vaughn the subcomponent for $2.85 a unit. If Vaughn could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by $9072 12204 16200 $1104 $(6132). s(4512). $7104 lts bv. Stud Click if you would...
y Han Products manufactures 22,000 units of part 5-6 each year for use on its production...
y
Han Products manufactures 22,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part 5-6 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.60 10.00 2.40 6.00 $ 22.00 An outside supplier has offered to sell 22,000 units of part 5-6 each year to Han Products for $20 per part. If Han Products accepts this offer, the facilities...
Royal Company manufactures 10,000 units of Part R-3 each year. At this level of activity, the...
Royal Company manufactures 10,000 units of Part R-3 each year.
At this level of activity, the cost per unit for Part R-3
follows:
Direct materials
$14.40
Direct labour
21.00
Variable manufacturing overhead
9.60
Fixed manufacturing overhead
25.00
Total cost per part
$70.00
An outside supplier has offered to sell 10,000 units of Part R-3
each year to Royal Company for $54 per part. If Royal Company
accepts this offer, the facilities now being used to manufacture
Part R-3 could be...
Exercise 11-9 Special Order Decision (LO11-4] Delta Company produces a single product. The cost of producing...
Exercise 11-9 Special Order Decision (LO11-4] Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 60,000 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expense Fixed selling and administrative expense $ 5.10 $ 3.80 $ 1.00 $ 4.20 $ 1.50 $ 2.40 The normal selling price is $21 per unit. The company's capacity is...
Madison Company has the following costs when producing 100,000 units: Variable costs $600,000 Fixed costs 900,000 An outside supplier has offered to make the item at $4.50 per unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $165,000. What is the net increase (decrease) in the net income of accepting the supplier's offer and buying the item at $4.50 per unit? A) $(15,000). B) $285,000. C) $840,000. D)...
Sheridan Company can stall the units it can produce of esther Plain or Fancy but not both Plain has a unit contribution margin of $50 and takes two machine hours to make and Fancy has a unit contribution margin of $51 and takes three machine hours to make. There are 2400 machine hours available to manufacture a product. What should Sheridan do? Make Plain which creates $ more profit per machine hour than Fancy does Make Fancy which creates $24...
21 A company has the following costs when producing 100,000 units: Variable costs $480,000 Fixed costs $700,000 A supplier is interested in producing the item. If the item is produced outside, the company could use the released production facilities to make another item that would generate $110,000 of net income. The fixed costs are unavoidable. At which unit price should the company accept the supplier's ofer? $5.70 e $7.00 O $8.90 NEXT > BOOKMARK CLEAR
Multiple Choice Question 133 Bonita Industries has fixed costs of $550000 and variable costs are 80% of sales. How much will Bonita report as sales when its net income equals $55000? O $3025000 O $484000 O $756250 O $2805000
Multiple Choice Question 77 Marigold Corp. incurs the following costs to produce 10100 units of a subcomponent: Direct materials Direct labor Variable overhead Foxed overhead $8484 11413 12726 16200 An outside supplier has offered to sell Marigold the subcomponent for $2.85 a unit If Marigold could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by $838 $(5929) $(3364) $6838
Item 151 is used in one of Policy Corporation's products. The company makes 21,600 units of this item each year. The company's Accounting Department reports the following costs of producing Item 151 at this level of activity: Direct materials Direct labor Variable manufacturing overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $2.10 $3.10 $4.20 $1.90 $3.60 $9.40 An outside supplier has offered to produce Item 151 and sell it to the company for $19.40 each. If...
PLUS e pen Assignment e: 07104 PM SOURCES Multiple Choice Question 77 Vaughn Manufacturing incurs the following costs to produce 10800 units of a subcomponent: Direct materials Direct labor Variable overhead 13608 Flxed overhead An outside supplier has offered to sell Vaughn the subcomponent for $2.85 a unit. If Vaughn could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by $9072 12204 16200 $1104 $(6132). s(4512). $7104 lts bv. Stud Click if you would...
y
Han Products manufactures 22,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part 5-6 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.60 10.00 2.40 6.00 $ 22.00 An outside supplier has offered to sell 22,000 units of part 5-6 each year to Han Products for $20 per part. If Han Products accepts this offer, the facilities...
Royal Company manufactures 10,000 units of Part R-3 each year.
At this level of activity, the cost per unit for Part R-3
follows:
Direct materials
$14.40
Direct labour
21.00
Variable manufacturing overhead
9.60
Fixed manufacturing overhead
25.00
Total cost per part
$70.00
An outside supplier has offered to sell 10,000 units of Part R-3
each year to Royal Company for $54 per part. If Royal Company
accepts this offer, the facilities now being used to manufacture
Part R-3 could be...
Exercise 11-9 Special Order Decision (LO11-4] Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 60,000 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expense Fixed selling and administrative expense $ 5.10 $ 3.80 $ 1.00 $ 4.20 $ 1.50 $ 2.40 The normal selling price is $21 per unit. The company's capacity is...
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