blessing5266
06.05.2020 •
Business
Cullumber Industries incurs unit costs of $8 ($5 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 12,400 of the assembly part at $6 per unit. If the offer is accepted, Cullumber will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Cullumber will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Solved
Show answers
More tips
- P Philosophy 8 привычек, чтобы достичь счастливой жизни...
- H Health and Medicine What to Eat to Lose Weight?...
- S Society and Politics Will Japan become Russia s Military Enemy?...
- P Philosophy Personal attitude towards Confession: how to prepare and undergo the procedure correctly?...
- H Health and Medicine Flu: How to Recognize It by the First Symptoms?...
- F Food and Cooking How to Sober Up Quickly? Important Facts and Tips...
- H Health and Medicine How to Properly Take a Blood Sugar Test?...
- H Health and Medicine Simple and Effective: How to Get Rid of Cracked Heels...
- O Other How to Choose the Best Answer to Your Question on The Grand Question ?...
Answers on questions: Business
- B Business A normal rate of return refers to the that investors must earn on the funds they invest in a firm, expressed as a percentage of the amount invested....
- B Business Import tariffs generally the output of domestic producers of the affected products and also the output of domestic exporters.A. decrease; decreaseB. decrease; increaseC....
- M Mathematics Please help me someone...
- M Mathematics if an interior angle of a polygon is 53 what is the measure of its exterior angle? i really need help...
- E English I am done playing tratters who wanna talk...
Ответ:
Buying externally would cost the company additional cost of $12,400
Explanation:
Under the present arrangement it would cost Cullumber $99,200($8*12,400) to produce 12,400 yards internally.
However,the acceptance of the supplier offer would cost $ 111,600 ($6+$3)*12,400)) which is higher than the cost under the present internal production arrangement.
Make Buy difference
Variable cost($5*12,400) $62000 - ($62,000)
Fixed cost ($3*12400) $37,200 $37,200 -
Purchase price($6*12400) - $74,400 $74,400
Total $99,200 $111,600 $12,400
The company should continue to produce in-house since it is cheaper.
Ответ:
bunny
Explanation: