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olasank [31]
2 years ago
13

Power Systems Inc. manufactures jet engines for the United States armed forces on a cost-plus basis.The production cost of a par

ticular jet engine is shown below:* Direct materials = $200,000* Direct labor = 150,000* Manufacturing overhead:* Supervisor's salary = 20,000* Fringe benefits on direct labor = 15,000* Depreciation = 12,000* Rent = 11,000* Total cost = $408,000If production of this engine was discontinued, the production capacity would be idle, and the supervisor would be laid off.The depreciation referred to above is for special equipment that would have no resale value and that does not wear out through use.When asked to bid on the next contract for this engine, the minimum unit price that Power Systems should bid is:1) $408,000.2) $365,000.3) $397,000.4) $385,000.
Business
1 answer:
defon2 years ago
6 0

Answer:

4) $385,000.

Explanation:

The computation of the minimum unit price is shown below:

= Direct materials + Direct labor + Supervisor salary + Fringe benefits on direct labor

= $200,000 + $150,000 + $20,000 + $15,000

= $385,000

Simply we added the direct material, direct labor, supervisor salary and the fringe benefits so that the accurate amount can come.

All other information which is given is not relevant. Hence, ignored it

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abruzzese [7]

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Explanation:

The Statute of Fraud mandates that certain contracts need to be written down. These contracts include the sale of land, amounts involving more than $500 and contracts that have a timeframe of over a year.

Melinda entered into a contract with terms that have to be fulfilled in more than a year. It is therefore under the Statute of Frauds.

3 0
2 years ago
Chester's product manager is considering lowering the price of the Cone product by $2.50 and wants to know what the impact will
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Answer:

The contribution margin will decrease by 2.50

Explanation:

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IF sales decreases, then the contribution margin decreases.

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Cone's should evaluate how much their sales are expected to increase for the lower price and be cautious

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Answer:

Following are the answer to this question:

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8 0
2 years ago
A farmer sells $25,000 worth of apples to individuals who take them home to eat, $50,000 worth of apples to a company that uses
forsale [732]

Answer:

<u>$25,000 </u>

Explanation:

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