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mixer [17]
2 years ago
6

Quinn has capacity to make 950,000 zippers per year, but due to a soft market, only plans to produce and sell 620,000 zippers ne

xt year. LeatherStuff currently buys zippers from an outside supplier for $3.50 each (the same price that Style receives). Assume that Style and LeatherStuff have agreed on a transfer price of $3.25. What are the total cost savings for LeatherStuff?
Business
1 answer:
Gekata [30.6K]2 years ago
8 0

Answer:

$22,500

Explanation:

The computation of the total cost saving is shown below:

= Cost saving × number of zippers needed

= $0.25 × 90,000 zippers

= $22,500

We simply multiply the cost saving with the needed zipper so that accurate amount can come

The cost saving would be

= Outside supplier price - transfer price

= $3.50 - $3.25

= $0.25

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

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Engines are the most expensive, heavy component on an aircraft and are designed with detailed specifications. Which of the follo
Nastasia [14]

Answer:

b.

Explanation:

In this scenario, the best theme for the analyst to look into would be a comparison of the commercial prospects of new aircraft models. Meaning a deep look into how well the new aircraft models will do in the commercial markets. This is because the stock prices of United Technologies and Rolls Royce ultimately depends on how well the company's products do when they get released. Therefore in order to decide which investment will return the highest ROI, it is best to compare their commercial prospects.

7 0
2 years ago
Which of the following best describes costs assigned to the product under the variable costing method? Direct labor (DL) Direct
masya89 [10]

Answer:

DL, DM, and VOH.

Explanation:

Under the variable costing method, direct labor cost, direct material cost and variable manufacturing overhead cost are cost assigned to the product. administrative, fixed manufacturing overhead cost are not variable cost and hence cannot be assigned to a product under variable costing method. Variable costing methods considers only manufacturing costs that change in total with changes in production level.

3 0
2 years ago
A company has an opening stock of 6,000 units of output. The production planned for the current period is 24,000 units and expec
Orlov [11]

Answer:

Explanation:

                                                Last year           Current year

Selling Price                      10                         10

Varaible Price                5                         6

Contribution Margin               5                               4

Break even is the point where total cost is equal to total revenue mean no profit and loss.

company earns the contribution margin after covering the variable cost, now only fix cost remains for break even.

Break Even using FIFO method :  first In first out system

Fix Cost                                                                            =     86000

contribution from opening units(6000*5)                            =     30000

Remaining Fix cost that should be Covered from

current year products                                                            =     56000

 

Units to be sold for break-even ( 56000/4)   = 14000

so we have break even units   6000+14000 = 20000

Fix cost                              = -86000

Opening 6000*5              = 30000

Current   14000*4             = 56000

Profit                                   = 0

Break Even using LIFO method : Last in first out

Fix Cost                                                                            =     86000

Break even =  Fix Cost / Contribution margin

Break even =  86000/4 =21500

current production is 24000 which is higher than break even units so we can cover the fix cost from current year production because company is using lifo method. we do not need opening units for the break even.

4 0
2 years ago
Kasravi Co. had net income for 2011 of $300,000. The average number of shares outstanding for the period was 200,000 shares. The
yuradex [85]

Answer:

$1.49 per share

Explanation:

The calculation of diluted earnings per share is given below:-

Diluted shares outstanding= $200,000 + 12,000 × ($36 - $30) ÷ 36

= $200,000 + 12,000 × 6 ÷ 36

= $200,000 + 2,000

= $202,000

Diluted earnings per share = Net income ÷ Diluted shares outstanding

= $300,000 ÷ $202,000

= $1.49 per share

Therefore for computing the diluted earnings per share we simply divide the net income by diluted shares outstanding.

5 0
2 years ago
Chris was the business manager for a real estate firm earning an annual salary of $40,000. Then Chris decided to become a consul
Reptile [31]

Answer:

The answer is: $40,000

Explanation:

Chris's opportunity cost of working as a consultant instead of working as a business manager (her old job) is $40,000. So in order for Chris to earn normal profit, the difference between his revenue and his combined explicit (e.g. rent, assistant's salary) and implicit costs (opportunity cost) is zero.

7 0
2 years ago
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