Business, 21.01.2021 22:40 Evilgus4846
Outram Corporation is presently making part I14 that is used in one of its products. A total of 8,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity:PER UNITDirect Materials$5.00Direct Labor$2.40Variable Manufacturing Overhead$3.70Supervisor's Salary$1.80Depreciation of special equipment$6.10Allocated general overhead$2.40An outside supplier has offered to make and sell the part to the company for $14.80 each. If this offer is accepted, the supervisor's salary and all of the variable costs can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. If management decides to buy part I14 from the outside supplier rather than to continue making the part, what would be the annual impact on the company's overall net operating income?A. Net operating income would decline by $15,200 per year. B. Net operating income would increase by $15,200 per year. C. Net operating income would increase by $52,800 per year. D. Net operating income would decline by $52,800 per year.
Answers: 3
Business, 22.06.2019 03:30, clevelandjaniya1
Sarah salesrep is brand new to her job selling "lifetime" printers that never need replacement ink cartridges. the problem is that these printers cost ten times more than a regular printer, so it is difficult to get prospective buyers to understand the cost savings of buying it. to break through the barrier and begin making sales, sarah should use a analysis that highlights her printer's lower cost.
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Business, 22.06.2019 09:00, nicoleaaliyah
Brian has been working for a few years now and has saved a substantial amount of money. he now wants to invest 50 percent of his savings in a bank account where it will be locked for three years and gain interest. which type of bank account should brian open? a. savings account b. money market account c. checking account d. certificate of deposit
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Outram Corporation is presently making part I14 that is used in one of its products. A total of 8,00...
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