Mcfarlain Corporation is presently making part U98 that is used in one of its products. A total of 12,000 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 Unit Direct materials $ 2.90 Direct labor $ 2.00 Variable overhead $ 0.80 Supervisor's salary $ 2.30 Depreciation of special equipment $ 2.30 Allocated general overhead $ 2.40 An outside supplier has offered to produce and sell the part to the company for $10.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, 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. In addition to the facts given above, assume that the space used to produce part U98 could be used to make more of one of the company's other products, generating an additional segment margin of $23,400 per year for that product. What would be the financial advantage (disadvantage) of buying part U98 from the outside supplier and using the freed space to make more of the other product
Answers: 3
Business, 21.06.2019 13:40, samchix9062
Which statement best defines a grant? a grant is an educational plan in which students alternate between studying for school and gaining work experience. a grant is a loan offered to students to pay for education-related expenses. a grant is money given by an organization for a specific purpose. a grant is a loan offered to anyone who is thinking about attending college.
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Business, 22.06.2019 12:30, cheyannehatton
Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers. firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?
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Business, 22.06.2019 15:10, hsbhxsb
Popeye produces 20 cans of spinach in 8 hours. wimpy produces 15 hamburgers in 10 hours. if each hamburger trades for 1.5 cans of spinach, then: a. wimpy’s production and productivity are greater than popeye’s. b. popeye’s production is greater than wimpy’s, but his productivity is less. c. wimpy’s production is greater than popeye’s, but his productivity is less. d. popeye’s production and productivity are greater than wimpy’s.
Answers: 3
Mcfarlain Corporation is presently making part U98 that is used in one of its products. A total of 1...
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