Business, 28.11.2019 06:31 TristonC1680

The sp corporation makes 40,000 motors to be used in the production of its sewing machines. the average cost per motor at this level of activity is:

direct materials $ 9.90
direct labor $ 8.90
variable manufacturing overhead $ 3.65
fixed manufacturing overhead $ 4.60
an outside supplier recently began producing a comparable motor that could be used in the sewing machine. the price offered to sp corporation for this motor is $25.15. if sp corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. direct labor is a variable cost in this company. the annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be:

multiple choice

($76,000)

$254,000

108,000

$184,000

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 12:10

Lambert manufacturing has $100,000 to invest in either project a or project b. the following data are available on these projects (ignore income taxes.): project a project b cost of equipment needed now $100,000 $60,000 working capital investment needed now - $40,000 annual cash operating inflows $40,000 $35,000 salvage value of equipment in 6 years $10,000 - both projects will have a useful life of 6 years and the total cost approach to net present value analysis. at the end of 6 years, the working capital investment will be released for use elsewhere. lambert's required rate of return is 14%. the net present value of project b is:

Answers: 2

Answer

Business, 22.06.2019 15:40

As sales exceed the break‑even point, a high contribution‑margin percentage (a) increases profits faster than does a low contribution-margin percentage (b) increases profits at the same rate as a low contribution-margin percentage (c) decreases profits at the same rate as a low contribution-margin percentage (d) increases profits slower than does a low contribution-margin percentage

Answers: 1

Answer

Business, 22.06.2019 16:10

The following are line items from the horizontal analysis of an income statement:increase/ (decrease) increase/ (decrease) 2017 2016 amount percent fees earned $120,000 $100,000 $20,000 20% wages expense 50,000 40,000 10,000 25 supplies expense 2,000 1,700 300 15 which of the items is stated incorrectly? a. fees earned b. supplies expense c. none of these choices are correct. d. wages expense

Answers: 3

Answer

Business, 22.06.2019 20:30

Juanita and sam attend a beach party and notice that the local beach appears to have a great deal more trash washed up on shore than it did when they were young. the water doesn't appear nearly as clear, and there seems to be less evidence of small water creatures living in the shallows. an afternoon at the local library convinces them that one major cause is the new factory nearby. after some discussion, they decide their next step should be identifying the cause of the changes identifying the problem picketing the guilty factory lobbying their elected representatives to complain about the problem talking to a local environmental group about solutions

Answers: 3

Answer

You know the right answer?

The sp corporation makes 40,000 motors to be used in the production of its sewing machines. the aver...

Questions