Reliable Watches, Inc. uses a standard part in the manufacture of watches. The total cost of...
Reliable Watches, Inc. uses a standard part in the manufacture of watches. The total cost of producing 37,000 parts is $169,000, which includes fixed costs of $64,000 and variable costs of $105,000. The company can buy the part from an outside supplier for $2.75 per unit and avoid 30% of the fixed costs. If Reliable outsources, what will be the effect on operating income?
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decrease of $19,200 |
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decrease of $22,450 |
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decrease of $3,250 |
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increase of $22,450 |
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Reliable Watches, Inc. uses a standard part in the manufacture
of watches. The total cost of...
Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total...
Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 33,000 parts is $105,000, which includes fixed costs of $50,000 and variable costs of $55,000. The company can buy the part from an outside supplier for $1 per unit and avoid 30% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $15,000. If Voltaic outsources, what...
Value Electronics uses a standard part in the manufacture of different types of radios. The total...
Value Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 28,000 parts is $90,000, which includes fixed costs of $30,000 and variable costs of $60,000. The company can buy this part from an external supplier for $5 per unit and avoid 10% of the fixed costs. If Value Electronics decides to outsource the production of the part, how will it impact its operating income?
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The...
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 43,000 parts is $140,000, which includes fixed costs of 560,000 and variable costs of $71,000 The company can buy the part from an outside Supplier for $3 60 per unit and avoid 30% of the fixed costs Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be...
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The...
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 40,000 parts is $143,000, which includes fixed costs of $70,000 and variable costs of $73,000. The company can buy the part from an outside supplier for $3.70 per unit, and avoid 30 % of the fixed costs. Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be...
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The...
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 42,000 parts is $138,000, which includes fixed costs of $68,000 and variable costs of $70,000. The company can buy the part from an outside supplier for $3.50 per unit, and avoid 30% of the fixed costs. Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold...
Question Help Harvey Automobiles uses a standard part in the manufacture of several of its trucks....
Question Help Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 60,000 parts is $140,000, which includes fued costs of $50,000 and variable costs of $90,000 The company can buy the part from an outside supplier for $3.50 per unit, and avoid 30% of the fixed costs. Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be...
Question Help Harvey Autiomobiles uses a standard part in the manufacture of several of its trucks....
Question Help Harvey Autiomobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 90,000 parts is $140,000, which includes fixed cost of$50,000 and variable costs of $90 000 The company can buy the part from an outside supplier for$350 per unit and avoid 30% of the fixed costs Assume that faclory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold...
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The...
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 40,000 parts is $140,000, which includes forced costs of $72.000 and variable costs of $60,000. The company can buy the part from an outside supplier for $4.00 per unit, and avoid 30% of the food costs Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold...
Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost...
Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 80,000 parts is $150,000, which includes fixed costs of $60,000 and variable costs of $90,000. By outsourcing the part, the company can avoid 70% of the fixed costs. If Harvey Automobiles buys the part, what is the most Harvey Automobiles can spend per unit so that operating income equals the operating income from making the part? (Round the final answer to the...
#2 Blue Ridge Bicycles a standard part in the manufacture of veral of its bikes. The cost of producing 43.000...
#2
Blue Ridge Bicycles a standard part in the manufacture of veral of its bikes. The cost of producing 43.000 part avoid 30% of the fixed costs. 510,000, which includes forced costs of $73,000 and variable costs of $66.000. By outsourcing the part, the compartycat Blue Ridge Bicydes buys the part what is the most Blue Ridge Bicycles can spend per unit so that operating income equals the operating income from making the part? (Round the final to the nearestent)...
Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 33,000 parts is $105,000, which includes fixed costs of $50,000 and variable costs of $55,000. The company can buy the part from an outside supplier for $1 per unit and avoid 30% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $15,000. If Voltaic outsources, what...
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 43,000 parts is $140,000, which includes fixed costs of 560,000 and variable costs of $71,000 The company can buy the part from an outside Supplier for $3 60 per unit and avoid 30% of the fixed costs Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be...
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 40,000 parts is $143,000, which includes fixed costs of $70,000 and variable costs of $73,000. The company can buy the part from an outside supplier for $3.70 per unit, and avoid 30 % of the fixed costs. Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be...
Question Help Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 60,000 parts is $140,000, which includes fued costs of $50,000 and variable costs of $90,000 The company can buy the part from an outside supplier for $3.50 per unit, and avoid 30% of the fixed costs. Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be...
Question Help Harvey Autiomobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 90,000 parts is $140,000, which includes fixed cost of$50,000 and variable costs of $90 000 The company can buy the part from an outside supplier for$350 per unit and avoid 30% of the fixed costs Assume that faclory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold...
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 40,000 parts is $140,000, which includes forced costs of $72.000 and variable costs of $60,000. The company can buy the part from an outside supplier for $4.00 per unit, and avoid 30% of the food costs Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold...
Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 80,000 parts is $150,000, which includes fixed costs of $60,000 and variable costs of $90,000. By outsourcing the part, the company can avoid 70% of the fixed costs. If Harvey Automobiles buys the part, what is the most Harvey Automobiles can spend per unit so that operating income equals the operating income from making the part? (Round the final answer to the...
#2
Blue Ridge Bicycles a standard part in the manufacture of veral of its bikes. The cost of producing 43.000 part avoid 30% of the fixed costs. 510,000, which includes forced costs of $73,000 and variable costs of $66.000. By outsourcing the part, the compartycat Blue Ridge Bicydes buys the part what is the most Blue Ridge Bicycles can spend per unit so that operating income equals the operating income from making the part? (Round the final to the nearestent)...
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