Question
#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
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Production Cost = 138000

Buying cost = (42000*3.7+70000*70%) = 204400

Difference = 204400-138000 = 66400

So answer is d) $66400 less than if the company bought the part

Add a comment
Know the answer?
Add Answer to:
#20 The cost of producing 42,000 paris $138,000, which includes fonds of 570.000 and variables of $60.000 The compan...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 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...

  • #2 Blue Ridge Bicycles a standard part in the manufacture of veral of its bikes. The cost of producing 43.000...

    #2 Blue Ridge Bicycles a standard part in the manufacture of veral of its bikes. The cost of producing 43.000 part avoid 30% of the fixed costs. 510,000, which includes forced costs of $73,000 and variable costs of $66.000. By outsourcing the part, the compartycat Blue Ridge Bicydes buys the part what is the most Blue Ridge Bicycles can spend per unit so that operating income equals the operating income from making the part? (Round the final to the nearestent)...

  • 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 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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT