SoccerdudeDylan
02.12.2020 •
Business
Mighty Safe Fire Alarm is currently buying 60,000 motherboards from MotherBoard, Inc., at a price of $65 per board. Mighty Safe is considering making its own boards. The costs to make the board are as follows: direct materials, $28 per unit; direct labor, $8 per unit; and variable factory overhead, $17 per unit. Fixed costs for the plant would increase by $76,000. Which option should be selected and why
Solved
Show answers
More tips
- S Science and Technology How to Restore the Diamond Shine to Your Tarnished Silverware...
- C Computers and Internet Boost your processor performance with these easy tips...
- L Leisure and Entertainment When will Maslenitsa start?...
- F Food and Cooking Discovering the Mysterious Fruit of Feijoa...
- B Business and Finance How to Open an Online Store? A Detailed Guide for Beginners...
- W Work and Career How to Write a Resume That Catches the Employer s Attention?...
- C Computers and Internet Е-head: How it Simplifies Life for Users?...
- F Family and Home How to Choose the Best Diapers for Your Baby?...
- F Family and Home Parquet or laminate, which is better?...
- L Leisure and Entertainment How to Properly Wind Fishing Line onto a Reel?...
Answers on questions: Business
- B Business Boku no hīrōakademia no mi neta wa bakana hen-taidesu Dare ga dōi shimasu ka? WAIT I TRANSLATED THIS AGAIN AND GOT It s a ridiculous metamorphosis that I ve seen in Hiroaka....
- B Business Credit for a set amount, such as the cost of a refrigerator, that is paid off in a set period of time is called...
- B Business Cullumber Inc., a real estate developing company, was accounting for its long-term contracts using the completed contract method prior to 2021. In 2021, it changed to the...
- B Business What is the duration of a two-year bond that pays an annual coupon of 10 percent and whose current yield to maturity is 11 percent? Use $1,000 as the face value. (Do not round...
- B Business Essary Enterprises has bonds on the market making annual payments, with seven years to maturity, a par value of $1,000, and selling for $974. At this price, the bonds yield...
- B Business An investment adviser has legal access to a broker-dealer s confidential research document and uses the information to support a recommendation to a client. The investment...
- B Business Create a graph that demonstrates equilibrium and excess demand. Make sure your graph includes the same supply and demand curves that you just created. In addition, label the...
- B Business A company identified the following estimated data in its two production departments. During the current month, Assembly used 200 direct labor hours and 300 machine hours and...
- B Business Shore Co. sells two products, kayaks and motors. Last year, Shore sold 12,600 units of kayaks and 23,400 units of motors. Related data are as follows: Product Unit Selling...
- B Business Client Story: In order to motivate our sales force to increase sales, we decided to increase our commissions and salaries and increase marketing. At the same time, our supplier...
Ответ:
It is cheaper to make the units in-house.
Explanation:
Giving the following information:
Buy:
Purchase price= $65
Make:
Direct materials= $28 per unit
Direct labor= $8 per unit
Variable factory overhead= $17 per unit.
Fixed costs for the plant would increase by $76,000.
We need to calculate the total cost for each option. The best option is the one with lower total costs:
Buy:
Total cost= 60,000*65= $3,900,000
Make:
Total cost= 60,000*(28 + 8 + 17) + 76,000
Total cost= 3,180,000 + 76,000
Total cost= $3,256,000
It is cheaper to make the units in-house.
Ответ:
The Value of the Dollar Over Time
Today's dollar value is much less than that of the past because of inflation. The growing U.S. debt weighs on the minds of foreign investors. In the long-term, they may continue to—little by little—move out of dollar-denominated investments.
Explanation: