![lorenzomendi1011](/avatars/42708.jpg)
lorenzomendi1011
26.12.2019 •
Business
An outside supplier has offered to provide the annual requirement of 5,500 of the parts for only $13 each. the company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier.
assume that direct labor is an avoidable co data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:
Solved
Show answers
More tips
- D Dating, Love, Relationships Does a Person s Character Depend on the Color of Their Eyes?...
- O Other Childhood Fears: What Many of Us Experienced...
- H Health and Medicine Simple and Effective: How to Get Rid of Cracked Heels...
- L Leisure and Entertainment What to Bring on a Hike? Essential Items to Pack for a Safe and Enjoyable Adventure...
- L Leisure and Entertainment Couchsurfing: A New Way to Travel...
- S Style and Beauty Autotanning: Harmful or Safe?...
- F Food and Cooking 10 Ideas for a Wedding Anniversary Gift...
- H Health and Medicine How to Reduce Sweating in the Heat and Beyond: Say Goodbye to Excessive Sweat...
- F Food and Cooking Do Aphrodisiacs Really Work? Separating Fact from Fiction...
- H Health and Medicine What to Eat to Lose Weight?...
Answers on questions: Business
- B Business When comparing competencies to KSAs, competencies...
- B Business One number that represents a group of numbers is called a/an...
- B Business How much interest does a $407 investment earn at 6% over seven years?...
- B Business Correct,p5-23 (similar to) value of a retirement annuity personal finance problem an insurance agent is trying to sell you an annuity, that will provide you with $9 comma 800 at the...
- B Business One-year treasury bills currently earn 3.25 percent. you expect that one year from now, one-year treasury bill rates will increase to 3.45 percent and that two years from now, one-year...
- B Business Adonor pledged $500,000 to a not-for-profit hospital in 2016 to conduct medical research, conditional on the hospital raising $500,000 from other donors. the other donors met the...
- B Business Adisadvantage of newspaper advertising is that: a. it has low geographic selectivity and flexibility. b. it encounters distractions from competing ads and news stories. c. it seldom...
- B Business Waltert, a cell phone manufacturer, has been the market leader in the country of besmagia ever since cell phones were introduced in the country. none of the other domestic or foreign...
- B Business In the context of budget deficits, what is crowding out? (a) when government borrowing leads to higher interest rates and corresponding decreases in private investment (b) when a...
- B Business Hailey, inc., has sales of $19,570, costs of $9,460, depreciation expense of $2,130, and interest expense of $1,620. assume the tax rate is 35 percent. what is the operating cash...
Ответ:
The the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be $6 per unit on average.
Explanation:
If Supler Corporation buys from an outside supplier, then they will not incur any variable cost. Also it is given that 60% of the fixed manufacturing overhead will be eliminated if the parts are purchased from an outside supplier, it means that 40% of the fixed manufacturing overhead are unavoidable and it will continue to incur 40% of the fixed manufacturing overhead even when that parts are purchased from outside supplier.
Unit product cost when the parts are purchased = Purchase cost + Unavoidable fixed manufacturing overhead = $13 + ( 40% * $5 ) = $15
Unit product cost when produced $21
(-) Unit product cost when purchased from outside supplier( $15 )
Financial advantage ( disadvantage ) $6
Therefore, The the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be $6 per unit on average.
Ответ:
yesn
Explanation: