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Madison Company has the following costs when producing 100,000 units: Variable costs $600,000 Fixed costs 900,000 A...
Multiple Choice Question 82 Bonita Industries has the following costs when producing 100000 units: Variable costs...
Multiple Choice Question 82 Bonita Industries has the following costs when producing 100000 units: Variable costs Fixed costs $600000 900000 An outside supplier has offered to make the item at $4.50 a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $164000. The net increase (decrease) in the net income of accepting the supplier's offer is $314000. $(14000). $844000. $286000.
21 A company has the following costs when producing 100,000 units: Variable costs $480,000 Fixed costs...
21 A company has the following costs when producing 100,000 units: Variable costs $480,000 Fixed costs $700,000 A supplier is interested in producing the item. If the item is produced outside, the company could use the released production facilities to make another item that would generate $110,000 of net income. The fixed costs are unavoidable. At which unit price should the company accept the supplier's ofer? $5.70 e $7.00 O $8.90 NEXT > BOOKMARK CLEAR
Sheridan Company can stall the units it can produce of esther Plain or Fancy but not...
Sheridan Company can stall the units it can produce of esther Plain or Fancy but not both Plain has a unit contribution margin of $50 and takes two machine hours to make and Fancy has a unit contribution margin of $51 and takes three machine hours to make. There are 2400 machine hours available to manufacture a product. What should Sheridan do? Make Plain which creates $ more profit per machine hour than Fancy does Make Fancy which creates $24...
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has...
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $40 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: Direct materials Direct labor Variable...
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has...
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $40 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally Per Unit $ 15 11...
Required 1: Assuming the company has no alternative use for the facilities that are now being...
Required 1: Assuming the company has no alternative use for the
facilities that are now being used to produce carburetors, what
would the financial advantage (disadvantage) of buying 15,000
carburetors from the outside supplier?
Required 2: Should the outside supplier's offer be accepted?
Required 3: Suppose that if the carburetors were purchased, Troy
Engines, Ltd., could use the freed capacity to launch a new
product. The segment margin of the new product would be $150,000
per year. Given this new...
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has...
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $36 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: 15,000 Units Per Unit Year...
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has...
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $35 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: Direct materials Direct labor Variable...
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has...
Troy Engines, Ltd., manufactures a variety of engines for use in
heavy equipment. The company has always produced all of the
necessary parts for its engines, including all of the carburetors.
An outside supplier has offered to sell one type of carburetor to
Troy Engines, Ltd., for a cost of $36 per unit. To evaluate this
offer, Troy Engines, Ltd., has gathered the following information
relating to its own cost of producing the carburetor
internally:
Direct materials Direct labor Variable...
Troy Engines, Ltd., manufactures a variety of engines for use In heavy equipment. The company has...
Troy Engines, Ltd., manufactures a variety of engines for use In heavy equipment. The company has always produced all of the necessary parts for Its engines, Including all of the carburetors. An outside suppller has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $40 per unit. To evaluate thls offer, Troy Engines, Ltd., has gathered the following information relating to Its own cost of producing the carburetor Internally: 15,808 Units Per Direct materials...
Multiple Choice Question 82 Bonita Industries has the following costs when producing 100000 units: Variable costs Fixed costs $600000 900000 An outside supplier has offered to make the item at $4.50 a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $164000. The net increase (decrease) in the net income of accepting the supplier's offer is $314000. $(14000). $844000. $286000.
21 A company has the following costs when producing 100,000 units: Variable costs $480,000 Fixed costs $700,000 A supplier is interested in producing the item. If the item is produced outside, the company could use the released production facilities to make another item that would generate $110,000 of net income. The fixed costs are unavoidable. At which unit price should the company accept the supplier's ofer? $5.70 e $7.00 O $8.90 NEXT > BOOKMARK CLEAR
Sheridan Company can stall the units it can produce of esther Plain or Fancy but not both Plain has a unit contribution margin of $50 and takes two machine hours to make and Fancy has a unit contribution margin of $51 and takes three machine hours to make. There are 2400 machine hours available to manufacture a product. What should Sheridan do? Make Plain which creates $ more profit per machine hour than Fancy does Make Fancy which creates $24...
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $40 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: Direct materials Direct labor Variable...
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $40 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally Per Unit $ 15 11...
Required 1: Assuming the company has no alternative use for the
facilities that are now being used to produce carburetors, what
would the financial advantage (disadvantage) of buying 15,000
carburetors from the outside supplier?
Required 2: Should the outside supplier's offer be accepted?
Required 3: Suppose that if the carburetors were purchased, Troy
Engines, Ltd., could use the freed capacity to launch a new
product. The segment margin of the new product would be $150,000
per year. Given this new...
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $36 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: 15,000 Units Per Unit Year...
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $35 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally: Direct materials Direct labor Variable...
Troy Engines, Ltd., manufactures a variety of engines for use in
heavy equipment. The company has always produced all of the
necessary parts for its engines, including all of the carburetors.
An outside supplier has offered to sell one type of carburetor to
Troy Engines, Ltd., for a cost of $36 per unit. To evaluate this
offer, Troy Engines, Ltd., has gathered the following information
relating to its own cost of producing the carburetor
internally:
Direct materials Direct labor Variable...
Troy Engines, Ltd., manufactures a variety of engines for use In heavy equipment. The company has always produced all of the necessary parts for Its engines, Including all of the carburetors. An outside suppller has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $40 per unit. To evaluate thls offer, Troy Engines, Ltd., has gathered the following information relating to Its own cost of producing the carburetor Internally: 15,808 Units Per Direct materials...
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