Homework Answers
| Produce Internally | Buy from outside | Variance | |
| Variable cost | 90000 | -90000 | |
| Fixed cost | 50000 | 35000 | -15000 |
| Purchase price | 315000 | 315000 | |
| Profit from alternate use of space | -17000 | -17000 | |
| 140000 | 333000 | 193000 |
Answer is D. $193,000 greater than if the company bought the part.
Add Answer to:
Question Help Harvey Autiomobiles 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....
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...
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...
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 $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...
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...
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...
30 Part P40 is a part used in the production of air conditioners at Jackson Corporation....
30
Part P40 is a part used in the production of air conditioners at Jackson Corporation. The following costs and data relate to the production of Part P40: Number of parts produced annually 27,000 Fixed costs $45,000 Variable costs $71.000 Total cost to produce $116,000 Jackson Corporation can purchase the part from an outside supplier for $4.71 per unit. If they purchase from the outside supplier, 50% of the fixed costs would be avoided. Assume that factory space freed up...
Part P40 is a part used in the production of air conditioners at Jackson Corporation. The...
Part P40 is a part used in the production of air conditioners at Jackson Corporation. The following costs and data relate to the production of Part P40: Number of parts produced annually 23,000 Fixed costs $43,000 Variable costs $71,000 Total cost to produce $114,000 Jackson Corporation can purchase the part from an outside supplier for $4.67 per unit. If they purchase from the outside supplier, 50% of the fixed costs would be avoided. Assume that factory space freed up by...
Harvey Manufacturing incurs the following costs to make 5,000 units of a sub-assembly part included in its finishe...
Harvey Manufacturing incurs the following costs to make 5,000 units of a sub-assembly part included in its finished product. Direct materials $10,000 Direct labor 20,000 Variable overhead 25,000 Fixed overhead 50.000 Included in the $50,000 of fixed overhead is $3,000 spent to rent production equipment that could be avoided if Harvey did not manufacture this part. If Harvey buys the part from an outside supplier, it could use factory resources to make another product which is estimated to have a...
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...
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...
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 $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...
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...
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...
30
Part P40 is a part used in the production of air conditioners at Jackson Corporation. The following costs and data relate to the production of Part P40: Number of parts produced annually 27,000 Fixed costs $45,000 Variable costs $71.000 Total cost to produce $116,000 Jackson Corporation can purchase the part from an outside supplier for $4.71 per unit. If they purchase from the outside supplier, 50% of the fixed costs would be avoided. Assume that factory space freed up...
Harvey Manufacturing incurs the following costs to make 5,000 units of a sub-assembly part included in its finished product. Direct materials $10,000 Direct labor 20,000 Variable overhead 25,000 Fixed overhead 50.000 Included in the $50,000 of fixed overhead is $3,000 spent to rent production equipment that could be avoided if Harvey did not manufacture this part. If Harvey buys the part from an outside supplier, it could use factory resources to make another product which is estimated to have a...
Most questions answered within 3 hours.
-
An economist wants to estimate the mean per capita income (in
thousands of dollars) for a...
asked 9 minutes ago -
What would be the input/output characteristic of a circuit
obtained by putting two of your 2's-complementers...
asked 8 minutes ago -
In Drosophila, the transition from the syncytial blastoderm
stage to the cellular blastoderm stage is a...
asked 36 minutes ago -
Project management question:
Name 3 different types of resources (hint: humans are one
type)
asked 49 minutes ago -
Consider the following reaction: C 2H 2( g) + 2H 2( g) C 2H 6(
g)...
asked 56 minutes ago -
Consider a 1.0 L buffer containing 0.092 mol L-1 HCOOH and 0.100
mol L-1 HCOO-. What...
asked 1 hour ago -
Koch Realty has owned a vacant land with a FMV of
$775,000 and an adjusted basis...
asked 1 hour ago -
It is estimated 29% of all adults in United States invest in
stocks and that 85%...
asked 1 hour ago -
What does a 2-sided p value of 0.04 mean? (I am not asking if it
is...
asked 1 hour ago -
A parallel-plate capacitor is made from two aluminum-foil
sheets, each 7.8 cmcm wide and 5.1 mmlong....
asked 1 hour ago -
1. why is toluene a stronger nucleophile than benzene?
2.why is phenol a stronger nucleophile than...
asked 1 hour ago -
4. How can you solve for the density of the liquid from the
slope? Please show...
asked 1 hour ago