Homework Answers
SOLUTION
Option C is correct i.e. $3.43
Maximum cost per unit = (Desired profit - Unavoidable fixed costs) / Units produced
= ($99,000 - $20,000) / 23,000
= 79,000 / 23,000 = $3.43
Unavoidable fixed costs = Fixed costs / Percentage of avoidable fixed costs
= $40,000 * 50% = $20,000
Add Answer to:
question 27 Part P40 is a part used in the production of air conditioners at Jackson Corporation. The following cost...
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 Fixed costs Variable costs Total cost to produce 23,000 $41.000 $71,000 $112.000 Jackson Corporation can purchase the part from an outside supplier for $4.32 per unit. If they purchase from the outside supplier, 50% of the fixed costs would be avoided. If Jackson Corporation makes the part, how...
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...
please answer Part P40 is a part used in the production of air conditioners at Jackson...
please answer
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 22,000 Fixed costs $40,000 Variable costs $66,000 Total cost to produce $106,000 Jackson Corporation can purchase the part from an outside supplier for $4.25 per unit. If they purchase from the outside supplier, 50% of the fixed costs would be avoided. What would be the impact...
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 Pes a parted in the production of a conditiones Jackson Corporation. The following costs and...
Part Pes a parted in the production of a conditiones Jackson Corporation. The following costs and data relate to the production of Part 40 Number of its produced analy Frosts Variable costs Total cost to produce 27,000 $65 000 $71.000 $116 000 A. $22 500 greater than it the company bought the part OB 5147240 greater than the company bought the part OC $78240 greater than it the company bought the part OD 531240 greater than if the company bought...
Mcfarlain Corporation is presently making part U98 that is used in one of its products. A...
Mcfarlain Corporation is presently making part U98 that is used in one of its products. A total of 23,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $4.70 $4.30 $1.80 $5.20 $5.20 $5.60 An outside supplier has offered to produce and sell the part...
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...
Sharp Corporation produces 8,000 parts each year, which are used in the production of one of...
Sharp Corporation produces 8,000 parts each year, which are used in the production of one of its products. The unit product cost of a part is $36, computed as follows: Variable production cost $16 Fixed production cost 20 Unit product cost $ 36 The parts can be purchased from an outside supplier for only $28 each. The space in which the parts are now produced would be idle and fixed production costs would be reduced by one-fourth. Based on these...
Kirsten Corporation makes 100,000 units per year of a part called a B345 gasket for use...
Kirsten Corporation makes 100,000 units per year of a part called a B345 gasket for use in one of its products. Data concerning the unit production costs of the B345 gasket follow: Direct materials $ 0.15 Direct labor 0.10 Variable manufacturing overhead 0.13 Fixed manufacturing overhead 0.24 Total manufacturing cost per unit $ 0.62 An outside supplier has offered to sell Kirsten Corporation all of the B345 gaskets it requires. If Kirsten Corporation decided to discontinue making the B345 gaskets,...
Division X makes a part with the following characteristics Production capacity Selling price to outside customers...
Division X makes a part with the following characteristics Production capacity Selling price to outside customers Variable cost per unit Pixed cost, total 32,000 units $ 32 25 $107.000 Division Y of the same company would like to purchase 10,070 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $31 each. Suppose Division X has ample excess capacity to handle all of Division Y's needs without any increase in...
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 Fixed costs Variable costs Total cost to produce 23,000 $41.000 $71,000 $112.000 Jackson Corporation can purchase the part from an outside supplier for $4.32 per unit. If they purchase from the outside supplier, 50% of the fixed costs would be avoided. If Jackson Corporation makes the part, how...
please answer
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 22,000 Fixed costs $40,000 Variable costs $66,000 Total cost to produce $106,000 Jackson Corporation can purchase the part from an outside supplier for $4.25 per unit. If they purchase from the outside supplier, 50% of the fixed costs would be avoided. What would be the impact...
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 Pes a parted in the production of a conditiones Jackson Corporation. The following costs and data relate to the production of Part 40 Number of its produced analy Frosts Variable costs Total cost to produce 27,000 $65 000 $71.000 $116 000 A. $22 500 greater than it the company bought the part OB 5147240 greater than the company bought the part OC $78240 greater than it the company bought the part OD 531240 greater than if the company bought...
Mcfarlain Corporation is presently making part U98 that is used in one of its products. A total of 23,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $4.70 $4.30 $1.80 $5.20 $5.20 $5.60 An outside supplier has offered to produce and sell the part...
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...
Sharp Corporation produces 8,000 parts each year, which are used in the production of one of its products. The unit product cost of a part is $36, computed as follows: Variable production cost $16 Fixed production cost 20 Unit product cost $ 36 The parts can be purchased from an outside supplier for only $28 each. The space in which the parts are now produced would be idle and fixed production costs would be reduced by one-fourth. Based on these...
Division X makes a part with the following characteristics Production capacity Selling price to outside customers Variable cost per unit Pixed cost, total 32,000 units $ 32 25 $107.000 Division Y of the same company would like to purchase 10,070 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $31 each. Suppose Division X has ample excess capacity to handle all of Division Y's needs without any increase in...
Most questions answered within 3 hours.
-
These surveys collect information in low- and
middle-income countries regarding the total fertility rate and the...
asked 7 minutes ago -
I need to determine the concentration of hydrogen peroxide in a
solution using titrimetric analysis
25...
asked 16 minutes ago -
Your are the Vice-President of operations for a New Orleans food
chain. In the aftermath of...
asked 21 minutes ago -
Create a flowchart and a program; test the program. Program
Requirements.
- There are 10 members...
asked 21 minutes ago -
Which of the following is not a sensory receptor?
a. a hair cell
b. a rod
c. a...
asked 24 minutes ago -
Does the launch speed depend significantly upon the launching
angle? Is it reasonable?
asked 54 minutes ago -
A disc of moment of inertia 3.00 kgm2 is rotating with angular
velocity 2.00 rad/s about...
asked 39 minutes ago -
Hi, can somone help me with this question?
Omega Company reported the following information for the...
asked 45 minutes ago -
WHY SOME PEOPLE DECIDE TO STAY IN THEIR HOMES WHEN AN EXTREME
WEATHER EVENT SURROUNDS THEM.
asked 42 minutes ago -
Which of the following is a financial intermediary?
a mutual fund
the stock market
a U.S....
asked 52 minutes ago -
Completely and thoroughly explain how control charts could be
used by a company that makes eyeglass...
asked 1 hour ago -
Explain how the equilibrium loanable funds interest rate is
determined? Please draw a picture of what...
asked 1 hour ago