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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...
Cotton Corp. currently makes 12,900 subcomponents a year in one of its factories. The unit costs...
Cotton Corp. currently makes 12,900 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 $25.00 25.00 14.00 10.ee $74.ee An outside supplier has offered to provide Cotton Corp. With the 12,900 subcomponents at an $76,00 per unit price. Fixed overhead is not avoidable. If Cotton Corp. accepts the outside offer, what will be the effect on short-term profits? Ο no...
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,...
Make or Buy a Component [LO2] Royal Company manufactures 10,000 units of Part R-3 each year....
Make or Buy a Component [LO2] 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. However, Royal Company has determined that $15 of the fixed manufacturing...
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...
8. Brady Corporation (a multi-product company produces and sells 7.000 units of Product X each year....
8. Brady Corporation (a multi-product company produces and sells 7.000 units of Product X each year. Each unit of Product X sells for $12 and has a contribution margin of $4. If Product Xis discontinued, $19,000 of the $32,000 in fixed costs charged to Product X could be eliminated. If Product X is discontinued, the company's overall operating income would: a) Decrease by $4,000 per year b) Increase by $9,000 per year c) Increase by $4,000 per year d) Decrease...
Can you please explain how I can do this problem please Intel Systems manufactures an optical...
Can you please explain how I
can do this problem please
Intel Systems manufactures an optical switch that it uses in its final product. Intel Systems incurred the following manufacturing costs when it produced 71.000 units last year: (Click the icon to view the manufacturing costs.) Another company has offered to sell Intel Systems the switch for $16.00 per unit. If Intel Systems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared...
***I only need answers for questions 3,4 and 5. Thank you Andretti Company has a single...
***I only need answers for questions 3,4 and 5. Thank you
Andretti Company has a single product called a Dak. The company normally produces and sells 121,000 Daks each year at a selling price of $44 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $8.50 9.00 3.60 3.00 ($363,000 total) 1.70 5.50 ($665,500 total)...
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...
Cotton Corp. currently makes 12,900 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 $25.00 25.00 14.00 10.ee $74.ee An outside supplier has offered to provide Cotton Corp. With the 12,900 subcomponents at an $76,00 per unit price. Fixed overhead is not avoidable. If Cotton Corp. accepts the outside offer, what will be the effect on short-term profits? Ο no...
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...
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...
8. Brady Corporation (a multi-product company produces and sells 7.000 units of Product X each year. Each unit of Product X sells for $12 and has a contribution margin of $4. If Product Xis discontinued, $19,000 of the $32,000 in fixed costs charged to Product X could be eliminated. If Product X is discontinued, the company's overall operating income would: a) Decrease by $4,000 per year b) Increase by $9,000 per year c) Increase by $4,000 per year d) Decrease...
Can you please explain how I
can do this problem please
Intel Systems manufactures an optical switch that it uses in its final product. Intel Systems incurred the following manufacturing costs when it produced 71.000 units last year: (Click the icon to view the manufacturing costs.) Another company has offered to sell Intel Systems the switch for $16.00 per unit. If Intel Systems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared...
***I only need answers for questions 3,4 and 5. Thank you
Andretti Company has a single product called a Dak. The company normally produces and sells 121,000 Daks each year at a selling price of $44 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $8.50 9.00 3.60 3.00 ($363,000 total) 1.70 5.50 ($665,500 total)...
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