Homework Answers
Answer : B = An Increase of $ 7500.
If company buys the units it will incur $ 7,500 more Total cost.
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Marigold Corp. can produce 100 units of a component part with the following costs: $20000 Direct...
Marigold Corp. can produce 100 units of a component part with the following costs: Direct Materials...
Marigold Corp. can produce 100 units of a component part with the following costs: Direct Materials $20000 Direct Labor 4500 Variable Overhead 18000 Fixed Overhead 11000 If Marigold Corp. can purchase the component part externally for $47000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision? a. Buy and save $2500 b. Make and save $500 c. Make and save $2500 d. Buy and save $4500
Swifty Corporation can produce 100 units of a component part with the following costs: Direct Materials...
Swifty Corporation can produce 100 units of a component part with the following costs: Direct Materials $19000 Direct Labor 3500 Variable Overhead 17000 Fixed Overhead 11000 If Swifty Corporation can purchase the units externally for $50000, by what amount will its total costs change? a. A decrease of $11000 b. An increase of $50000 c. An increase of $10500 d. An increase of $15500
Sunland Company can produce 100 units of a component part with the following costs: Direct Materials...
Sunland Company can produce 100 units of a component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $25000 9500 23000 11000 If Sunland Company can purchase the units externally for $65000, by what amount will its total costs change? An increase of $7500 O A decrease of $11000 An increase of $65000 An increase of $15500
Sheridan Company can produce 100 units of a component part with the following costs: Direct Materials...
Sheridan Company can produce 100 units of a component part with the following costs: Direct Materials $9000 Direct Labor 7500 Variable Overhead 10000 Fixed Overhead 11000 If Sheridan Company can purchase the units externally for $30000, by what amount will its total costs change? An increase of $1500 An increase of $3500 A decrease of $11000 An increase of $30000
Coronado Industries can produce 100 units of a component part with the following costs: Direct Materials...
Coronado Industries can produce 100 units of a component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $11000 9500 10000 11000 If Coronado Industries can purchase the component part externally for $35000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Buy and save $4500 Make and save $2500 Make and save $500 Buy and save $2500
Vaughn Manufacturing can produce 100 units of a component part with the following costs: Direct Materials...
Vaughn Manufacturing can produce 100 units of a component part with the following costs: Direct Materials $14000 Direct Labor 5500 Variable Overhead 9000 Fixed Overhead 11000 If Vaughn Manufacturing can purchase the component part externally for $35000 and only $4000 of the fixed costs can be avoided, what is the correct make- or-buy decision? Make and save $500 Buy and save $500 OMake and save $2500 Buy and save $6500 Sunland Music produces 60000 CDs on which to record music....
Park Industries can produce 100 units of a component part with the following costs: Direct Materials...
Park Industries can produce 100 units of a component part with the following costs: Direct Materials $12000 Direct Labor 3500 Variable Overhead 13000 Fixed Overhead 11000 If Park Industries can purchase the component part externally for $33000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision? A. Make and save $500 B. Make and save $2,500 C. Buy and save $4,500 D. Buy and save $2,500
Marigold Corp. produces 60000 CDs on which to record music. The CDs have the following costs:...
Marigold Corp. produces 60000 CDs on which to record music. The CDs have the following costs: Direct Materials $15500 Direct Labor 18000 Variable Overhead 2000 Fixed Overhead 7000 None of Marigold Corp.’s fixed overhead costs can be reduced, but another product could be made that would increase profit contribution by $4000 if the CDs were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the CDs, what is the maximum external price that...
Sheridan's Manufacturing Company can make 100 units of a necessary component part with the following costs:...
Sheridan's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $112000 17000 39000 30000 If Sheridan's Manufacturing Company can purchase the component externally for $170000 and only $6000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Make and save $11000 Make and save $4000 Buy and save $4000 Buy and save $11000
Oriole's Manufacturing Company can make 100 units of a necessary component part with the following costs:...
Oriole's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $116000 21000 47000 30000 If Oriole's Manufacturing Company can purchase the component externally for $185000 and only $7000 of the fixed costs can be avoided, what is the correct make-or-buy decision? O Buy and save $6000 O Make and save $6000 O Buy and save $18000 o Make and save $18000
Sunland Company can produce 100 units of a component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $25000 9500 23000 11000 If Sunland Company can purchase the units externally for $65000, by what amount will its total costs change? An increase of $7500 O A decrease of $11000 An increase of $65000 An increase of $15500
Coronado Industries can produce 100 units of a component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $11000 9500 10000 11000 If Coronado Industries can purchase the component part externally for $35000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Buy and save $4500 Make and save $2500 Make and save $500 Buy and save $2500
Vaughn Manufacturing can produce 100 units of a component part with the following costs: Direct Materials $14000 Direct Labor 5500 Variable Overhead 9000 Fixed Overhead 11000 If Vaughn Manufacturing can purchase the component part externally for $35000 and only $4000 of the fixed costs can be avoided, what is the correct make- or-buy decision? Make and save $500 Buy and save $500 OMake and save $2500 Buy and save $6500 Sunland Music produces 60000 CDs on which to record music....
Sheridan's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $112000 17000 39000 30000 If Sheridan's Manufacturing Company can purchase the component externally for $170000 and only $6000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Make and save $11000 Make and save $4000 Buy and save $4000 Buy and save $11000
Oriole's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $116000 21000 47000 30000 If Oriole's Manufacturing Company can purchase the component externally for $185000 and only $7000 of the fixed costs can be avoided, what is the correct make-or-buy decision? O Buy and save $6000 O Make and save $6000 O Buy and save $18000 o Make and save $18000
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