Ahsan Company makes 60,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct materials $12.60 Direct labor 17.20 Variable manufacturing overhead 4.10 Fixed manufacturing overhead 15.00 Unit product cost $48.90 An outside supplier has offered to sell the company all of these parts it needs for $69.70 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $319,600 per year. If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $4.30 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products. How much of the unit product cost of $48.90 is relevant in the decision of whether to make or buy the part? Multiple Choice $44.60 $17.20 $69.70

Answers

Answer 1

Answer:

Ahsan Company

Only $44.60 of the unit product cost of $48.90 is relevant in the decision of whether to make or buy the part.

Explanation:

a) Data and Calculations:

Annual units of parts produced = 60,000

Unit product costs:

Direct materials                              $12.60

Direct labor                                       17.20

Variable manufacturing overhead    4.10

Fixed manufacturing overhead      15.00

Unit product cost                         $48.90

Outside supplier's offer price per unit = $69.70

Relevant /avoidable costs:

Direct materials                                   $12.60

Direct labor                                            17.20

Variable manufacturing overhead         4.10

Fixed manufacturing overhead           10.70

Unit product cost                              $44.60

Opportunity cost ($319,600/60,000)   5.33

Total avoidable/relevant costs/unit $49.93


Related Questions

Sheryls's business sells a single product. The following information was gathered from Sheryls's records: Price $97.00 per unit Variable costs are 67% of sales price The company's fixed costs are $400,000 annually Current sales total is 16,000 units Target profit before tax $33,000 Budgeted sales total is 15,000 units How many units does Sheryls's business need to sell to break even

Answers

Answer:

12,497 units

Explanation:

Break even unit = Fixed Cost ÷ Contribution per unit

                           = $400,000 ÷ $97.00 x 33%

                           = 12,497 units

Sheryls's business need to sell  12,497 units to break even

Perform a horizontal analysis providing both the amount and percentage change. (Round Percentage answers to 1 decimal place. Decreases should be indicated by a minus sign.)

Year
2021 2020
Cash $322,960 $880,000
Accounts receivable 702,240 280,000
Inventory 897,780 780,000
Long-term assets 3,536,680 2,380,000
Total assets $5,459,660 $4,320,000

Answers

Answer:

Find attached

Explanation:

Horizontal or trend analysis involves is a financial statement analysis technique that shows the percentage change or dollar change in a corresponding financial statement's item.

For example, the change in the fixed assets by a way of increase or decrease compared to last year's financial statements.

Formula:

change in a particular line item=(current year amount/previous year)-1

In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem, you will explore how saving and investment are connected to the international flow of capital and goods in an economy. Before delving into the relationship between these various components of an economy, you will be asked to recall some relationships between aggregate variables that will be useful in your analysis.

Recall the components that makeup GDP. National income (Y) equals total expenditure on the economy's output of goods and services. Thus, where C= consumption, I= investment, G =government purchases, X=exports, M =imports, and NX= net exports.
Y= _____

Also, national saving is the income of the nation that is left after paying for _____. Therefore, national saving (S) equals:
S=_____

Rearranging the previous equation and solving for Y yields, Y= _____ Plugging this into the original equation showing the various components of GDP results in the following relationship:
S=_____

Answers

Answer:

Y = C + I + G + NX

S = Y - C

S = I + G + NX

Explanation:

National Income Y = C + I + G + NX ; {where consumption, investment, government purchases, net exports ie exports - imports are corresponding expenditure of households, firms, government, rest of the world}

National Saving (S) is income (Y) left after paying for consumption (C) . So, S = Y - C

Using above equations, Y = C + S , Y = C + I + G + NX

C + S = C + I + G + NX

So, S = I + G + NX

Which organization compiles data on individuals and businesses to report on their credit?
TransUnion
The Bureau of Consumer Protection
The National Credit Union Administration
Vantage Scores

Answers

Answer:

Option A

Explanation:

There are primarily three credit bureaus to which the Lenders go namely -

a) TransUnion

b) Equifax

c) Experian

These three agencies are interested in reviewing credit reports before lending any financial aid.

Hence, option A is correct

Answer:

TransUnion

Explanation:

Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $28 million gaming center: a. Issue $28 million of 6% bonds at face amount. b. Issue 1 million shares of common stock for $28 per share. 2. Which alternative results in the highest earnings per share

Answers

Answer:

Penny Arcades, |nc.

a. Issue $28 million of 6% bonds at face amount.

Explanation:

Alternative A will surely result in higher earnings per share than Alternative B.  It has been established that some financial leverage enables the stockholders to earn more per share.  This is not a debatable issue.  The hard work lies with the corporation's ability to find the debtholders that can finance its activities and assets.  This means that the stockholders of Penny Arcades, Inc. will be at a much more financial advantage if they can find creditors to lend it the $28 million for the gaming center than making the finance available themselves.

why do conduction band electrons posses very high energy's.h​

Answers

Just because of band gap. The forbidden energy gap keeps the conduction band at high energy by an amount to equal to band gap energy from the valence band edge. If you compare energies of electrons present in conduction band and valence band, they significantly differ by an amount equal to band gap energy. The low energy electron presents in a valence band requires an energy equal to band gap energy to excite to conduction band. Consequently, the electrons present in conduction band possess high energy compared to electrons present in valence band. At absolute zero K, the low energy states present in valence band are usually completely occupied where as the high energy states present in the conduction band are unoccupied.

Describe the life cycle of a product and explain profitability and sales volume at each stage

Answers

Answer:

Product Life Cycle: Overview

The product life cycle (PLC) describes a product's life in the market with respect to business/commercial costs and sales measures. It proceeds through multiple phases, involves many professional disciplines and requires many skills, tools and processes.

This is not to say that product lives cannot be extended – there are many good examples of this – but rather, each product has a ‘natural’ life through which it is expected to pass.

The stages of the product life cycle are:

Introduction

Growth

Maturity

Decline

PLC management makes these three assumptions:

Products have a limited life and, thus, every product has a life cycle.

Product sales pass through distinct stages, each of which poses different challenges, problems and opportunities to its parent company.

Products will have different marketing, financing, manufacturing, purchasing and human resource requirements at the various stages of its life cycle.

The product life cycle begins with the introduction stage (see ). Just because a product successfully completes the launch stage and starts its life cycle, the company cannot take its success for granted.

image

Product Development and Product Life Cycle: The Product Life Cycle follows directly after new product development.

A company must succeed at both developing new products and managing them in the face of changing tastes, technologies and competition. A good product manager should find new products to replace those that are in the declining stage of their life cycles; learning how to manage products optimally as they move from one stage to the next.

Product Lifecycle Management Stage 1: Market Introduction

This stage is characterized by a low growth rate of sales as the product is newly launched and consumers may not know much about it. Traditionally, a company usually incurs losses rather than profits during this phase. Especially if the product is new on the market, users may not be aware of its true potential, necessitating widespread information and advertising campaigns through various media.

However, this stage also offers its share of opportunities. For example, there may be less competition. In some instances, a monopoly may be created if the product proves very effective and is in great demand.

Characteristics of the introduction stage are:

High costs due to initial marketing, advertising, distribution and so on.

Sales volumes are low, increasing slowly

There may be little to no competition

Demand must be created through promotion and awareness campaigns

Customers must be prompted to try the product.

Little or no profit is made owing to high costs and low sales volumes

Growth

During the growth stage, the public becomes more aware of the product; as sales and revenues start to increase, profits begin to accrue.

Explanation:

market:blue Jean market . event :the dye in blue jeans is proven not fade easily .Name the market​

Answers

DontBuyFromUs

If contracting parties attach materially different meanings to a contract word or term subject to more than one reasonable interpretation, the contract is void. a. True b. False

Answers

Answer:

True

Explanation:

A contract is a professional document with the set of guidelines and regulations for a business when there is a partnership between two or more people, and that should be a parameter instrument for the effectiveness of a business and compliance with the current legislation.

Every contract must be drafted in a clear and objective manner, with equal rights and obligations for all members and in such a way as not to give scope for different interpretations or clauses that benefit someone. Therefore, it is correct to state that if the contracting parties assign different meanings to words or a contractual term that gives rise to more than one interpretation, the contract will be void.

Assume that, on January 1, 2021, Matsui Co. paid $2,958,000 for its investment in 87,000 shares of Yankee Inc. Further, assume that Yankee has 290,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $580,000 at January 1, 2021. The following information pertains to Yankee during 2021:

Net income $290,000
Dividends declared and paid $87,000
Market price of common stock on 12/31/2021 $36 /share

Required:
What amount would Matsui report in its year-end 2021 balance sheet for its investment in Yankee?

Answers

Answer: $3,018,900

Explanation:

Amount to report is:

= Cost of investment + Share of Net income - Share of dividends

Share of Net income

= Percentage ownership * Net income

= 87,000 shares / 290,000 * 290,000

= $87,000

Share of Dividends

= 87,000 / 290,000 * 87,000

= $26,100

Amount to report:

= 2,958,000 + 87,000 - 26,100

= $3,018,900

How do I solve this? It’s a real estate question.

Answers

A.2.2 points(the answer)(you’re welcome)

Do you think that some people have difficulty talking to others face-to-face because of how prevalent texting is today? When you have an issue that you need to discuss with someone, do you prefer to sit down and talk it out, handle it through texting or social media, or some other form of written communication? Write your response to the following questions in a 5-7 sentence paragraph below (Please help asap)​

Answers

Answer: I do think that people have difficulty talking to others face-to-face because of how prevalent texting is today. The reason for that is because we’ve gotten used to having time to think about our answer before sending our message. In general, there’s less pressure with texting than there is with face-to-face. You’re in front of the person you’re talking to and they’re able to monitor you closely, which could make some people uncomfortable and unable to think of anything to say. Another reason is because texting is able to be done without moving. It’s more convenient than meeting up with someone to discuss something.

Austin Corporation, a U.S. corporation, received the following investment income during the current year: $50,000 of dividend income from ownership of stock in a French corporation, $20,000 interest on a loan to its Dutch subsidiary, $40,000 royalty from its 50 percent owned Irish venture, and $30,000 capital gain from sale of its stock in a Brazilian corporation. How much of Austin's income is treated as foreign source

Answers

Answer:

Austin's income is treated as a foreign source    $110,000

Explanation:

The computation of the amount of income treated as the foreign source is given below;

Dividend income arise from the ownership of stock in a French corporation        $50,000

Add: Interest on a loan to its Dutch subsidiary      $20,000

Add: Royalty from its 50 percent owned Irish venture $40,000

Austin's income is treated as a foreign source    $110,000

the preferred stock of BGE, inc. is sold at $37 and pays a divident of $5. And the net price of the secuirty after issurancee costs is estimated to be $32.93 what is the cost of preferred stock for BGE? g

Answers

Answer:

15.18%

Explanation:

Cost of preferred stock = Annual dividend/Net Proceeds

Cost of preferred stock = $5 / $32.93

Cost of preferred stock = 0.1518372305

Cost of preferred stock = 15.18%

So, the cost of preferred stock for BGE is 15.18%.

Capital budgeting is the process of making capital expenditure decisions. used in sell or process further decisions. of determining how much capital stock to issue. of eliminating unprofitable product lines.

Answers

Answer:

The correct answer is the first option: of making capital expenditure decisions.

Explanation:

To begin with, the term known as "Capital Budgeting", in the field of business management, refers to the method a company's manager use in order to see how profitable it is to start some new inversions or projects, therefore that the main purpose of this process is to involve the elaboration of a budget that will help the superiors of the organization to make capital expenditure decisions when they are looking for a new inversion or project to start with. It is very helpful in the situations where there is a need for evaluation of future prospects.

A productive process approachviews operations as a separate organizational function.must provide feedback information for control of process inputs and technology.is of limited use in service organizations.disregards human and social concerns.

Answers

Answer:

The correct answer is the second option: Must provide feedback information for control of process inputs and technology.

Explanation:

To begin with, the term known as " Productive process approach" in the field of business management is refered to the method used by the companies who seeks for the constant improvement of its daily operations inside the organization. Therefore that it is necessary to say that this approach must provide feedback information of the internal processes that happen in the business regarding the inpunts and the technology used by the place so that a regular control will take place and with that every little adjustment as well in order to get better at every possible way to produce the company's product.

Journalize the following transactions, using the allowance method of accounting for uncollectible receivables
Mar. 17: Received $2,700 from Keith MacPhearson and wrote off the remainder owed of $6,370 as uncollectible.
Mar. 17 July 29: Reinstated the account of Keith MacPhearson and received $6,370 cash in full payment.

Answers

Answer:

                                 Journal entry

Date Account & Explanation                     Debit      Credit

Mar 17.    Cash                                                 $2,700

               Allowance for doubtful accounts   $6370  

                        Account receivable                                $9,070

Jul 29     Account receivable                         $6,370

                        Allowance for doubtful accounts           $6,370

              (To record amount reinstated)

               Cash                                                 $6,370

                         Account receivable                                 $6,370

              (To record amount received)

Please help with the following question.

Answers

Answer:i dont really know

Explanation:

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