subject
Business, 17.06.2020 20:57 dommalb

Pentagon Corporation uses pressure pumps in the production of RO filters. The unit manufacturing costs for the pressure pumps are: Direct materials $12
Direct labor 3
Variable overhead 1
Fixed overhead 5
Pentagon uses 120,000 units of pressure pumps per year.

Hexagon Corporation has offered to sell Pentagon 120,000 units of pressure pumps per year for $17 each. Fixed overhead is unavoidable. Should Pentagon manufacture the pressure pumps or buy them from Hexagon Corporation?

a. Pentagon should buy the pressure pumps because it will save $120,000.
b. Pentagon should buy the pressure pumps because it will save $480,000.
c. Pentagon should make the pressure pumps because it will save $120,000.
d. Pentagon should make the pressure pumps because it will save $480,000.

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 21.06.2019 21:40, fespinoza019
Forecasting as a first step in the team’s decision making, it wants to forecast quarterly demand for each of the two types of containers for years 6 to 8. based on historical trends, demand is expected to continue to grow until year 8, after which it is expected to plateau. julie must select the appropriate forecasting method and estimate the likely forecast error. which method should she choose? why? using the method selected, forecast demand for years 6 to 8.
Answers: 2
image
Business, 22.06.2019 04:10, chloeholt123
What is the difference between secure bonds and naked bonds?
Answers: 1
image
Business, 22.06.2019 12:30, bcarri4073
M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.
Answers: 1
image
Business, 22.06.2019 19:30, mfkinnatz
Dollar shave club is an ecommerce start-up that delivers razors to its subscribers by mail. by doing this, dollar shave club is using a(n) to disrupt an existing market. a. innovation ecosystem b. architectural innovation c. business model innovation d. incremental innovation
Answers: 2
You know the right answer?
Pentagon Corporation uses pressure pumps in the production of RO filters. The unit manufacturing cos...

Questions in other subjects:

Konu
Mathematics, 16.02.2021 06:10