Homework Answers
| Calculation of maximum outsourced amount to be paid so that operating income under both method is same. | |||||||
| When the total costs under both the method is same, the operating income would remain same | |||||||
| Maximum outsourced amount | Total cost for making part/No of parts produced | ||||||
| Maximum outsourced amount | 139000/43000 | ||||||
| Maximum outsourced amount | $3.23 | ||||||
| Thus, Blue Ridge Bicycles should spend maximum $3.23 per part to purchase. | |||||||
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#2 Blue Ridge Bicycles a standard part in the manufacture of veral of its bikes. The cost of producing 43.000...
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 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...
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...
#20 The cost of producing 42,000 paris $138,000, which includes fonds of 570.000 and variables of $60.000 The compan...
#20
The cost of producing 42,000 paris $138,000, which includes fonds of 570.000 and variables of $60.000 The company can buy the par Blue Ridge Bicycles uses a standard part in the manufacture of w al k outside supplier for $370 and 30% of the feed costs Blue Ridge Bicycles the part how chwili perting income be? OA $91.000 g r than the company bought the part OB. 566,400 gr a n the company bought the part OC. 391.000 less...
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...
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? decrease of $19,200 decrease of $22,450 decrease of $3,250 increase of $22,450
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 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 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...
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...
#20
The cost of producing 42,000 paris $138,000, which includes fonds of 570.000 and variables of $60.000 The company can buy the par Blue Ridge Bicycles uses a standard part in the manufacture of w al k outside supplier for $370 and 30% of the feed costs Blue Ridge Bicycles the part how chwili perting income be? OA $91.000 g r than the company bought the part OB. 566,400 gr a n the company bought the part OC. 391.000 less...
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...
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...
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