Han Products manufactures 37000 units of part S-6 each year for use on its production line. A this level of activity, the ost per unit for part S-6 is:

Direct materials $3.60
Direct labor 9.00
Variable manufacturing overhead 2.40
Fixed manufacturing overhead 6.00
Total cost per part $21

An outside supplier has offered to sell 37,000 units of part S-6 each year to Han Products for $19 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $87,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier.

Required:
What is the financial advantage (disadvantage) of accepting the outside supplier's offer?

Answers

Answer 1

Answer:

$13,000

Explanation:

The computation of the financial advantage (disadvantage) of accepting the outside supplier's offer is given below:

Making cost  

Materials (37,000 × $3.60)        $133,200

Direct Labour (37,000 × $9.00) $333,000

Overhead:  

Variable (37,000 × $2.40)   $88,800

Fixed      (37000 × 6.00)      $222,000

Total making cost             $777,000

For buying cost  

outside market purchase (37,000 × 19.00) $703,000

Unavoidable fixed overheads (37000 × 6 × 2÷3) $148,000

Less: Rentout of resources           ($87,000)

Total Cost if buy                         $764,000

So, the Financial advantage of accepting the outside suppliers offer is

= $777,000 - $764,000

= $13,000


Related Questions

During Reagan’s administration, the __________ Department was given a "blank check" to purchase whatever they needed.

Answers

Answer: defense

Explanation:

During Reagan’s administration, the defense department was given a "blank check" to purchase whatever they needed.

During Reagan's administration,, he also implemented supply side economic policies and a huge tax cut as well as the rise in the expenditure on defense.

A discontinuous innovation is a product that:___________

a. disrupts consumers' normal routine but does not require totally new learning.
b. requires no new learning by consumers.
c. is not purchased by innovators and early adopters.
d. initiates obsolescence of a product class.
e. requires consumers to learn entirely new patterns of behavior and product usage.

Answers

Answer: e. requires consumers to learn entirely new patterns of behavior and product usage

Explanation: Innovation could be described as the introduction of something new to the market, this coid be marked by changes in the working principle or implementation or modification of new product features or even a complete overhaul of previoulsy existiing functions. A Discontinous innovation can be explained as a total change or complete overhaul in the type of product produce. It is marked by having a complete difference from the previously existing versions. As such, there is a shift or change in the usage of the product which is totally different from that which exists with the previously adopted versions.

Answer:

e. requires consumers to learn entirely new patterns of behavior and product usage.

Explanation:

Discontinuous innovation is defined as a new product in a market or industry that requires the final user to change behaviour by learning a new process for use of the product. It causes dramatic change in the dynamics of the industry such as competition, industry revenue, growth rate, and pricing.

The products introduce a function that has never existed before so customers will need to learn entirely new patterns of behavior and product usage.

Ace Co. issued 1,000 shares of its $10 par value common stock for $15 per share in cash. How should this transaction be reported in Ace's statement of cash flows for the year of issuance

Answers

Answer:

$15,000 cash inflow from financing activities

Explanation:

Financing operations: it records operations concerning long-term debt and equity balance of shareholders. The issuance of the shares is an inflow of cash while other redemption and dividend are an outflow of cash

Since 1,000 shares are issued at $10 par value for $15 per cash

Here we record the $15,000 as cash inflows as this represents that the capital introduced in the business and the same is to be considered

You only have $10 to spend for the week. You decide to spend $8 on a movie instead of buying an $8 pizza. a. What is the scarce resource? Why is this the scarce resource? b. What are the two potential choices you had? c. What is the opportunity cost of the choice you made?

Answers

Answer:

[See Below]

Explanation:

* The scarce resource would be 10$.

 - Why? Because it's limited.

* The two choices you had were an 8$ movie or an 8$ pizza.

* The opportunity cost was 8$ and having 2$ left.

Which of the following statements is correct? Managers will be more likely to pursue projects that will benefit the entire company when being evaluated on ROI instead of residual income. A manager might reject a proposal using ROI that the manager would accept using residual income. A project that is not acceptable usi

Answers

Answer:

A.Incorrect

B. Incorrect

Explanation:

a) A manager might reject a proposal using ROI that the manager would accept using residual income

The statement is incorrect. The reverse is true. Using ROI entails the manager comparing the ROI after a project to the ROI before, where implementing a project makes the ROI after to be less than what it before the project, the Manager would most likely not implement the project. This would happen notwithstanding that the project  produces positive residual income.

b) Managers will be more likely to pursue projects that will benefit the entire company when being evaluated on ROI instead of residual income.

This statement is incorrect. ROI makes the manager to pursue his own interest and that of its division at the expense of the group objectives. It leads to sub-optimal decision

According to the capital asset pricing model (CAPM), the security market line is a straight line. The intercept of this line should be equal to

Answers

Answer: C. The risk-free rate

Explanation: According to the Capital Asset Pricing Model, the security market line is a straight line. The intercept of this line should be equal to:

A. Zero

B. The expected risk premium on the market portfolio

C. The risk-free rate

D. The expected return on the market portfolio

The intercept of the security market line (This line shows the expected rate of return of a security as a function of systematic, non-diversifiable risk (beta), in other words, it is simply the line on which all capital investments lie) is equal to the risk-free interest rate (the theoretical rate of return of an investment with no risk of financial loss) according to the Capital Asset Pricing Model (CAPM).

The line is represented graphically as a straight line with risk on its horizontal axis, which is the independent variable, and expected return on the vertical axis, which is the dependent variable. The security market line also shows that investors would want higher rates of return with increasing levels of risk taken.

How well acquainted with a sport would a publicist need to be in order to do his or her job effectively?

Answers

Answer:

at the very least, understand the basics of the sport in question

Explanation:

A publicist is an individual who generates and manages publicity for a company, a brand, or a public figure. If the publicist works for a sports company/magazine they need to, at the very least, understand the basics of the sport in question such as the rules, basic terminology used, player names/states, etc. This is because they need to write articles that make sense, and since the audience reading them will be very well versed in the sport, then the information provided needs to be accurate.

. Information found on the company's income statement and balance sheet is extracted from these documents and examined more closely through the use of

Answers

Answer:

Ratio analysis

Explanation:

Financial statements are used to show the assets, liabilities, revenues, expenses, and owners equity of a business entity within a given time frame.

Income statement is revenue less expense within a given period. While the balance sheet shows the financial position of a business at a particular point, that is its assets, liabilities, and owner equity.

Information form financial statements are analysed by the use of ratio analysis to gain a better understanding of financial condition of an organisation.

Ratio analysis compares the magnitude of line items within financial statements to determine liquidity, profitability, solvency and operational efficiency of a business.

For example current ratio shows how well a business can use its current assets to settle its current liability, this is a liquidity ratio.

Answer: Ratio Analysis

Explanation;

Ratio analysis is a very important method of financial analysis that enables one to make inferences and see relationships from the data presented by a company in it's financial statements.

Most ratios are divided into 5 different types being;

ProfitabilityLiquidityActivityDebt, and Market

An example of a Liquidity ratio would be the Current Ration which divides Current Assets by Current Liabilities to see if the company has enough liquidity to pay off current liabilities.

ou need to give the customer something that they need." This statement best reflects the beliefs of marketers during the _____ Era.

Answers

Answer: Marketing Era

Explanation:

The Marketing Era is one of the so-called eras of Marketing which defined how producers related to customers and hence try to show how marketing has changed over the years.

In the Marketing Era , the focus of producers was to give the customers items they actually needed and wanted so that instead of having to convince customers to buy goods that the company made which the customers may not have wanted, by making what the customer actually wanted, they would not have to spend so much on convincing them.

Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He receives a Loan Estimate from his lender. What's the purpose of this document?

Answers

Answer: The purpose of this document is to detail estimated closing costs for Lawrence's loan

Explanation:

From the question, we are informed that Lawrence is a buyer closing on a home purchase for which he's obtaining financing and that he receives a loan estimate from his lender.

The function of a loan estimate is to detail estimated closing costs for the loan that Lawrence's took. With the low estimate, Lawrence will have an idea of what he'll pay

People often make decisions on the basis of a mental accounting. One facet of this accounting is making a decision based on the way a problem was posed. This is called ________.

Answers

Answer: framing

Explanation:

From the question, we are informed that people often make decisions on the basis of a mental accounting and that one facet of this accounting is making a decision based on the way a problem was posed.

The above situation is referred to as framing. The way a problem is actually leads to the way the problem will be solved.

Without completing a signed agency agreement, the licensee may call herself A) a subagent. B) a facilitator. C) a designated agent. D) an agent.

Answers

Answer:

B) a facilitator

Explanation:

-A subagent is a person that acts as an agent after being assigned by a broker.

-A facilitator is an agent that has not being chosen as the client's representative.

-A designated agent is an agent that is assigned by a broker to represent a client and the other client in the transaction is represented by another agent that works with the same broker.

-An agent is a person that represents a buyer or seller in a real state transaction.

According to this, the answer is that without completing a signed agency agreement, the licensee may call herself a facilitator because she has not being designated by the client as his/her representative.

According to rankings by many people over the years what is the number one expectation that people have a job they will enjoy

Answers

Answer:doing work that makes the best use of one's abilities and creates a feeling of accomplishment

Explanation:

I'm in 9th and just took that

When the demand for an initial public offering (IPO) of securities exceeds the number of securities issued, the offering is deemed to be:

Answers

Answer:

Oversubscribed

Explanation:

A security is oversubscribed when he demand for an initial public offering (IPO) of securities exceeds the number of securities issued.

The underwriters can increase the price of the security or increase the offer of securities

Fresh fish is not an effective form of money. What essential characteristic of money does fresh fish lack that most makes it ineffective

Answers

Answer:

Medium of exchange

Explanation:

Fresh fish is not an effective form of money. Fresh fish lacks medium of exchange, which makes it ineffective.

f a company is to respond successfully to change, it must be able to _____ and _____, which is known as the _____ approach.

Answers

Answer: create ideas; implement ideas; ambidextrous

Explanation:

If a company is to respond successfully to change, it must be able to create ideas and then implement the ideas that have been created which is known as the ambidextrous approach.

The constant thing in every sphere of life is change and every individual and firm should always be ready when the change comes.

"Assuming that PDQ Corporation has annual net sales of $303,000,000 and annual cost of goods sold of $202,000,000, what is the inventory turnover ratio for PDQ Corporation?"

Answers

Answer:

2

Explanation:

The inventory turnover ratio is defined as the ratio of the cost of goods sold to the average inventory.

Average Inventory = annual net sales - annual cost of goods sold

Average Inventory  = $303,000,000 - $202,000,000

Average Inventory = $101,000,000

Given cost of goods sold = $202,000,000

Inventory turnover ratio = cost of good sold/average inventory

Inventory turnover ratio = $202,000,000/$101,000,000

Inventory turnover ratio = 202/101

Inventory turnover ratio = 2

Hence the inventory turnover ratio for PDQ Corporation is 2

Gravitational force and gravity.​

Answers

Answer:

is how u fall

Explanation:

Gravity , or gravitation, is a natural phenomenon by which all things with mass or energy—including planets, stars, galaxies, and even light—are brought toward one another.

Brittany is choosing the type of media for a new promotional campaign for Halls cough drops. She knows that each type of media has both benefits and disadvantages. She is considering the Internet as a form of media. Which of the following is not a disadvantage of the Internet as a promotional medium?A) Costs of precise targeting are high.B) Effects of promotion can be difficult to measure.C) There are concerns about privacy.D) The message must be short and simple.E) There are concerns about security.

Answers

Answer: D) The message must be short and simple

Explanation:

As the world evolves and new development takes place, the internet has become an advertising tool used in marketing. Even though it's effective in reaching out to the customers, it has disadvantages such as high costs, the promotion effects can be difficult to measure, privacy and security issues.

The advantage in the question given is that the message must be short and simple.

Rico’s Taqueria had cash inflows from operating activities of $31,000; cash outflows from investing activities of $26,000, and cash outflows from financing activities of $16,000. Calculate the net increase or decrease in cash.

Answers

Answer:

The Decrease in cash -$11,000

Explanation:

The computation of the net increase or decrease in cash is shown below:

Cash inflows from operating activities $31,000

Less:

Cash outflows from investing activities -$26,000

Cash outflows from financing activities -$16,000

The Decrease in cash -$11,000

Hence, the decrease in cash is -$11,000 as they are two cash outflows activities and one inflow activities

In the theory of consumer choice, when a person is choosing which good or service to consume, how does he or she select the units of good or service to consume

Answers

Explanation:

The consumer choice theory corresponds to the variables that lead a consumer to consume a product or service instead of another.

The purchase decision-making process consists of several stages where the consumer identifies a need, searches for available options to satisfy that need and finally, evaluates and chooses the most appropriate purchase option.

This decision is linked to the benefits that the consumer will have with the product in relation to his budget.

Select the components of a market analysis.

a. the consumption process of potential customers
b. the economic, physical, and technological environment
c. the organization's own capabilities
d. the capabilities of current and future competitors
e. an understanding of injurious consumption

Answers

Answer:

All of the above except option e.

Explanation:

To gain success and growth is the motto of every business, for this it is very important for a company to analyse the market properly, this shall include:

i) Knowing your customers properly, knowing the targeted audience of  the product or service provided by the company.

ii) The company shall accurately analyse the environment in which it runs, this includes all the factors, physical, economical, or technological or political etc:

iii) The company shall analyse its own capabilities properly and evaluate the areas where it needs to work even more.

iv) Knowing your competitors is very important as it provides for the ongoing and upcoming challenges, a business shall face.

On November 1, Year 2, Smith Co. contracted to dispose of an industry segment on February 28, Year 3. Throughout Year 2, the segment had operating losses. These losses were expected to continue until the segment's disposition. Which of the following losses should be included in discontinued operations reported in Smith's Year 2 income statement?

I. Operating losses for the period January 1 to October 31, Year 1.
II. Operating losses for the period November 1 to December 31, Year 1.
III. Estimated operating losses for the period January 1 to February 28, Year 2.


a. II and III only.
b. I and II only.
c. II only.
d. I and III only.

Answers

Answer:

Choice "B" is correct. The operating losses to be included in Smith's Year 1

Explanation:

To provide excellent customer service to those in the electrical industry through the use of high-tech solutions is an example of a:__________. A) work structure. B) goal C) mission D) code of conduct E) vision

Answers

Answer:

C) mission

Explanation:

The statement provided in the question is an example of the company's mission. A mission statement is a short statement explaining why an organization exists, and what it is intending to accomplish as its overall goal. Many times this statement may also include what kinds of products or services it provides, its primary customers or market, and its geographical region of operation. In this statement, they provided their overall goal, target market, and their products.

Tom elects the Life Income with 10-year Period Certain settlement option. Tom dies in year 6. The beneficiary receives payments for _______.
A. Life
B. 4 years
C. 10 years
D. 6 years

Answers

Answer:

B. 4 years

Explanation:

As per the certain life income period, the guaranteed payments for the recipient lifetime or the specified time duration whichever is more.

Now if the recipient dies before the certain period ended, so the payments would be continued to the other beneficiary unless there is an end for the certain period

So, in the given situation, the payments would be received for

= 10 years - 6 years

= 4 years

Hence, the correct option is B. 4 years

Gary Kelly, CEO of Southwest Airlines, talks to a group of reservation agents to acknowledge their contributions to the company's success.What function of management?

Answers

Answer:

leading

Explanation:

The function of management that the CEO is performing in this scenario is known as leading. This function focuses on motivating employees and influencing their behavior to achieve organizational objectives. In this scenario, the CEO of the company is motivating the employees by letting them know that they have been doing a great job and that top management is noticing their efforts which in term will cause them to perform even better with hopes that they will get bonuses or a promotion.

It is best to reduce the level of pollution _______ Group of answer choices A) until all negative externalities are internalized. B) to zero. C) as long as the benefit exceeds the cost of doing so. D) until all external costs have been eliminated.

Answers

Answer:

The correct answer is the option B: To zero.

Explanation:

To begin with, it will always be better for a country to reduce the level of pollution to zero. The economy of the country will find this point more profitable due to the fact that now the ecosystem will give better resources from the ground and with those elements the companys will produce better goods as well. Moreover, at that point there will be no need for the company to pay taxes on pollution or to even have to deal with it because there will be any

Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are compatible with Multiprint printers, and no two models share the same specifications. What type of pricing does Multiprint use?

Answers

Answer:

Multiprint use "captive product pricing " type of pricing.

Explanation:

Captive Market or product Pricing seems to be the manufacturers' promotional strategy whereby the fundamental or central commodity price is typically significantly reduced, while the concentrated goods are considered challenging.This draws low-price buyers to something like the core functionality, which enables vendors to generate huge profits from the captive goods that are required to be using the commodity.

Marketing is the ___________________, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Answers

Answer:

Activity

Explanation:

Marketing is the activity that is to be conducted for promoting the company goods and services so that the it would create awareness among the people at large

It is an activity process of developing, communiciation, delivering, communicating, the value of customers, clients, society at large

hence, the answer is Activity

"An investor has purchased shares of an international bond fund. The fund will have inferior performance if the value of the:"

Answers

Answer:

B. U.S. Dollar increases and foreign currency decreases

Explanation:

When the foreign currency declines as compared with the dollar, so the fund of net asset value should be transformed in dollars as the little dollars are established as the each of its foreign curreny units purchased less dollars this results in cheap performance as per the U.S investor view

So here in the given case, the Dollar of U.s should rise and the foreign currency declines

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