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silverdays1215
18.10.2019 •
Business
Kawai corporation, which makes and sells 85,000 radios annually, currently purchases the radio speakers it uses for $8.00 each. each radio uses one speaker. the company has idle capacity and is considering the possibility of making the speakers that it needs. kawai estimates that the cost of materials and labor needed to make speakers would be a total of $6.50 for each speaker. in addition, supervisory salaries, rent, and other manufacturing costs would be $170,000. allocated facility-level costs would be $75,000. required determine the change in net income kawai would experience if it decides to make the speakers.
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Ответ:
Net income will belowerselected answer correctby$(42,500)selected answer correct
Explanation:
Solution :
Total material and labor cost ( 85,000 x $6.50)$552,500
Add : supervisor salary, rent & manufacturing costs$170,000
Add: Allocated costs ( see note)
Total manufacturing cost speakers$722,500
Less : existing purchasing cost ( 85,000 x $8)$680,000
Net income will be lower by$42,500
Note : allocated costs is not an additional costs, this is the cost which is incurred by kawal corporation even if it purchases speakers for market.
Ответ:
Effect on income= $-117,500
Explanation:
Giving the following information:
Kawai Corporation, which makes and sells 85,000 radios annually, currently purchases the radio speakers it uses for $8.00 each.
Kawai estimates that the cost of materials and labor needed to make speakers would be a total of $6.50 for each speaker. Also, supervisory salaries, rent, and other manufacturing costs would be $170,000. Allocated facility-level costs would be $75,000.
Buy= 85000*8= $680,000
In house:
Production costs= 6.5*85,000 + 75,000= 627,500
Other fixed costs= 170,000
Total cost= $797,500
Effect on income= 680,000 - 797,500= $-117,500
Ответ:
I visited Whole Foods page and found the following values:
Highest QualityCustomer SatisfactionTeam member Grrowth and HapinessWin win partnerships with suppliersProfit and prosperity creationCare about community and environmentHow do they relate to the products the company sells?The company sell organic food in markets that aim to improve people nutrition. The company is involved with different foundations.
Did anything surprise you about the company's values?Not really, whole foods have a strong and clear communication of what the company is about and I have expeienced those values when I go shopping there.