![mydoggy152](/avatars/5209.jpg)
mydoggy152
02.11.2020 •
Business
Wintertime Company produces the handles which are used in the production of their snow shovels. Wintertime’s costs to produce 60,000 handles annually are as follows: Direct materials $30,000 Direct labor 55,000 Variable overhead 25,000 Fixed overhead 40,000 TOTAL $150,000 An outside supplier has offered to sell Wintertime similar handles for $2.25 per handle. If the handles are purchased from the outside supplier, $25,000 of annual fixed factory overhead will continue to be incurred and will be allocated to other products. The facilities now being used to make the handles could be rented to another company for $25,000 per year if the handles are purchased from the outside supplier. 8. If Wintertime chooses to buy the handles from the outside supplier, then the change in annual net income due to accepting the offer is a: a. Net income will not change b. $25,000 increase. c. $15,000 increase. d. $10,000 decrease.
Solved
Show answers
More tips
- B Business and Finance How to Open an Online Store? A Detailed Guide for Beginners...
- L Leisure and Entertainment What can be considered an antique: defining and valuing old objects...
- L Leisure and Entertainment Choosing the Right Books to Read: Tips and Recommendations...
- C Computers and Internet Step-by-Step Guide on How to Download Music to Your iPhone...
- H Health and Medicine Naskol ko Opasen Ukus Kleshcha i Kak Ego Raspoznat...
- F Family and Home How to Choose Suitable Windows for Your Home?...
- L Leisure and Entertainment What Movies You Should Watch: A Guideline to Make the Right Decision...
- L Leisure and Entertainment How to Identify a Song? Which Program Can Recognize a Song by Its Melody?...
- H Health and Medicine Coughing: Causes, Types, and Treatment Methods...
- F Family and Home Parquet or laminate, which is better?...
Answers on questions: Business
- B Business A company is considering the following alternatives: Alternative 1 Alternative 2 Revenues $120,000 $120,000 Variable costs 60,000 70,000 Fixed costs 35,000 35,000 Which of the following...
- B Business One reason people moved to the cities was that new industries, particularly the __ [ Select ] __ industry needed people to work in __ [ Select ] __, where giant machines created...
- B Business How will knowing how to work on a team be important to you in the future?...
- S Social Studies Which beliefs are held by both Hindus and Buddhists choose three correct answers...
- C Chemistry Which of the following could be the chemical formula for a compound? Group of answer choices C + O2 Si H2O Zn...
- H Health How can earthquake affects the mental and emotional health of people?...
- B Business Dyer, Inc., completed its first year of operations on December 31, 2018. Because this is the end of the annual accounting period, the company bookkeeper prepared the following preliminary...
- C Computers and Technology Create a Python script that enables a user to enter an integer number into the Python console and stores such integer number into a variable named input1. Use an if statement to...
- H History Name the countries of africa that were involved in the slave trade from 1500-1900...
- E English How does wikipedia illustrate cooperation and kindess...
Ответ:
Option C
Explanation:
There will be 15,000 increase in net income for purchasing the handles from outside supplier as it saves us a cost of 15,000
Cost of manufacturing 60,000 handles = $150,000
If the company purchases it from outside = 2.25 per handle x 60,000 handles = $135,000
fixed factory overheads of $ 25,000 will be still there as additional cost
Additional rental income = 25,000
Outsourcing handles = cost to purchase + fixed factory overhead - rental income
Outsourcing handles = 135,000 + 25,000 - 25,000
Outsourcing handles = 135,000
Net Income effect = Cost of manufacturing - Cost to outsouce
Net income effect = 150,000 - 135,000
Net income effect = 15,000 increase
Ответ:
ok ok ok
Explanation:
coolc