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wlad13 [49]
2 years ago
11

Make-or-Buy Decision Somerset Computer Company has been purchasing carrying cases for its portable computers at a purchase price

of $24 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 40% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $8.00 Direct labor 12.00 Factory overhead (40% of direct labor) 4.80 Total cost per unit $24.80 If Somerset Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 25% of the direct labor costs.
a. Prepare a differential analysis dated April 30 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. If an amount is zero, enter "0".
Business
1 answer:
madreJ [45]2 years ago
3 0

Answer:

Differential analysis as at April 30

                                            Make (Alternative 1)  Buy (Alternative 2)

Purchase Price                                $0.00                     $24.00

Direct materials                               $8.00                       $0.00

Direct labor                                     $12.00                      $0.00

Variable Costs - Case related         $3.00                      $0.00

Total Cost                                       $23.00                    $24.00

Conclusion

Company should make carrying cases instead of purchasing as this is cheaper by $1.00

Explanation:

There is a choice to be made between Make (Alternative 1) and Buy (Alternative 2). Compute the Total costs for these choices.

Ignore the fixed overheads as they are the same for both alternatives and hence irrelevant.

Choose the alternative with lower costs.

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The owner of a valuable painting hired professional movers to transport it to an auction house when she decided to sell it. As t
MAVERICK [17]

Answer:

No. She suffered no physical impact

Explanation:

Negligent infliction of emotional distress occurs when a person engages in an act that can cause  severe emotional distress to another .

The plaintiff must be able to prove that the act was done willfully or provide an evidence that

  • It was a result of defendant's negligence
  • Plaintiff suffered emotional distress a direct  result of the action
  • The action was foreseeable by the defendant
  • The plaintiff was in a danger zone

before he can win a claim.

The question here is how to prove emotional stress? The plaintiff must be able to show a verifiable physical injury that is linked to the emotional distressed suffered.

7 0
2 years ago
Edison Corporation's variable manufacturing overhead rate is $5.00 per direct labor-hour. Total budgeted fixed overhead is $25,0
Mila [183]

Answer:

Manufacturing overhead for July will be $55000

Explanation:

We have given budgeted labor hour in month of July = 20000

Variable overhead rate = $5

So variable manufacturing overhead = 20000×$5 = $100000

Fixed manufacturing overhead = $25000

Now total manufacturing overhead = $100000+$25000 = $125000

Depreciation expense = $7000

So manufacturing overhead for July = $125000 - $7000 = $55000  

6 0
1 year ago
Hedge Fun is a landscaping firm that specializes in topiary. It contracts with the owners of 125 local homes and provides its se
tekilochka [14]

Answer:

Break-even level of output = 56

Explanation:

Given:

Annual Revenue = $1,300

Total Fixed cost = $28,000

Variable cost = $800

Computation of contribution:  

Contribution = Sales - Variable cost

Contribution = Revenue - Variable cost

Contribution = $1,300 - $800

Contribution = $500

Computation of Break-even level of output:

Break-even level of output = Total Fixed cost / Contribution

Break-even level of output = $28,000 / $500

Break-even level of output = 56

3 0
2 years ago
Masterson, Inc., has 4.1 million shares of common stock outstanding. The current share price is $84, and the book value per shar
Kitty [74]

Answer:

The answer is "8.37%".

Explanation:

\text{MV of equity} = \text{equity price}  \times \text{number of outstanding shares}

                     =84 \times 4100000\\\\=344400000

\text{MV of Bond1}=\text{Par value} \times \text{bonds outstanding} \times \text{age of percentage}

                      =1000 \times 70000 \times 0.98 \\\\=68600000

\text{MV of Bond2}=\text{Par value} \times \text{bonds outstanding} \times \text{age of percentage}

                      =1000 \times 50000 \times 1.08 \\\\=54000000

\text{MV of firm} = \text{MV of Equity} + \text{MV of Bond1}+ \text{MV of Bond 2}

                  =344400000+68600000+54000000\\\\=467000000

\text{Weight of equity W(E)} = \frac{\text{MV of Equity}}{\text{MV of firm}}

                                     = \frac{344400000}{467000000}\\\\=0.7375

\text{Weight of debt W(D)}= \frac{\text{MV of Bond}}{\text{MV of firm}}

                                  = \frac{122600000}{467000000}\\\\=0.2625

Equity charges

By DDM.  

\text{Price = new dividend} \times  \frac{(1 + \text{rate of growth})}{( \text{Equity expense-rate of growth)}}

84 = 3.95  \times  \frac{(1+0.05)}{(\text{Cost of equity}- 0.05)}\\\\84 = 3.95  \times  \frac{(1.05)}{(\text{Cost of equity} - 0.05)}\\\\84 = \frac{4.1475}{ (\text{Cost of equity} - 0.05)}\\\\\text{Cost of equity} -0.05 = \frac{4.1475}{84}\\\\\text{Cost of equity} -0.05 = 0.049375\\\\\text{Cost of equity}  = 0.049375 + 0.05\\\\\text{Cost of equity}  = 0.099375 \\\\\text{Cost of equity} \%  = 9.9375 \% \ \ \ or  \ \ \ 9.94 \%  \\\\

Debt expenses  

Bond1

K = N \times 2 \\\\

Bond \ Price = \sum  [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}]     +   \frac{Par\  value}{(1 + \frac{YTM}{2})^{N \times 2}}

k=1\\\\K =20 \times 2\\\\980 = \sum  [ \frac {(5.1 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] +   \frac{1000}{(1 + \frac{YTM}{200})}^{20 \times 2}\\\\k=1\\\\\ YTM1 = 5.2628923903\\\\Bond2\\

K = N \times 2

Bond \ Price = \sum  [ \frac{\text{(Semi Annual Coupon)}}{(1 + \frac{YTM}{2})^k}]     +   \frac{Par\  value}{(1 + \frac{YTM}{2})^{N \times 2}}

k=1\\\\K =12 \times 2\\\\

1080 =\sum [\frac{(5.6 \times \frac{1000}{200})}{(1 + \frac{YTM}{200})^k}] +\frac{1000}{(1 +\frac{YTM}{200})^{12 \times 2}} \\\\k=1\\\\YTM2 = 4.72\\\\

\text{Company debt costs} = YTM1 times \frac{(MV \ bond1)}{(MV \ bond1+MV \ bond2)}+YTM2 \times \frac{(MV \ bond2)}{(MV \ bond2)}\\\\

The cost of the debt for the company:

= 5.2628923903 \times \frac{(68600000)}{(68600000+54000000)}+4.72 \times \frac{(68600000)}{(68600000+54000000)}\\\\

Business debt cost=5.02 \% \\\\

after taxation cost of debt:  

= \text{cost of debt} \times (1- tax \ rate)\\\\= 5.02 \times (1-0.21)\\\\= 3.9658\\\\

WACC= \text{after debt charges} \times W(D)+equity cost  \times W(E) \\\\

            =3.97 \times 0.2625+9.94 \times 0.7375 \\\\ =8.37 \% \\\\

7 0
1 year ago
Think about the ideal job that you would like to obtain after graduation. Describe this job, the kind of manager you would like
marusya05 [52]

Answer:

Please find the detailed answer as follows:

Explanation:

1. Expectancy is an individual's recognition of the degree to which exertion will bring about a specific degree of execution. Instrumentality is an individual's discernment about the degree to which execution at a specific level will bring about the accomplishment of results. Valence alludes to how alluring every result accessible from an occupation or association is to an individual. High anticipation is the conviction that a significant level of exertion will bring about an elevated level of execution. High instrumentality is the conviction that a significant level of execution will bring about the achievement of wanted results.

High valence is emotional and alludes to inclinations for specific results over others. Managers can impact levels of anticipation, instrumentality, and valence. High anticipation can be empowered by communicating trust in representatives' capacities, holding workers to elevated requirements, and giving representatives self-rule and duty. Chiefs can likewise furnish workers with preparing to guarantee mastery required for the elite. High instrumentality can be urged by connecting execution to results and unmistakably imparting this linkage to all workers. Directors additionally need to figure out which results have high valence for authoritative individuals and ensure that those results are given when individuals perform at a significant level.

2. A referent is somebody to whom the examination is made to decide whether treatment is impartial. A referent could be someone else or a gathering of individuals who are seen to be like themselves. The referent could likewise be an individual from a past activity or one's assumptions regarding what result/input proportions ought to be. Workers feel impartially treated when they feel that their result/input proportion is equivalent to a referent's result/input proportion. Value has to do with reasonableness of results comparative with inputs.

Supervisors can assist representatives with feeling impartially treated by ensuring that the individuals who contribute numerous information sources are remunerated with a bigger number of results than the individuals who contribute fewer data sources. In the event that an individual changes one part of their proportion, the director should ensure that the opposite side of the proportion changes too. In the event that sources of info increment, results should increment. On the off chance that sources of info decline, results should diminish also.

3. An objective is a thing that an individual is attempting to achieve through their endeavors and conduct. The objective setting hypothesis proposes that to bring about high inspiration and execution, objectives must be explicit and troublesome. Objectives are normally quantitative, for example, a measure of product sold, or time expected to complete a venture.

Directors might be altogether answerable for defining objectives, or workers may take an interest in the definition of objectives to guarantee acknowledgment and duty to the objectives. Notwithstanding whether explicit, troublesome objectives are set by administrators, laborers, or both together, they lead to elevated levels of inspiration and execution. Administrators additionally add to the objective setting by giving criticism about how representatives are getting along. This input enables the two administrators and representatives to decide progress and causes them to reconsider objectives when essential.

4. A need is a requirement or necessity for endurance and prosperity. Maslow distinguished five essential sorts of requirements: physiological, wellbeing, belongingness, regard, and self-completion needs. Maslow recommended that individuals contrast in what needs they are attempting to fulfill at work. Herzberg concentrated on two components: helper needs identified with the idea of the work, and cleanliness needs identifying with the physical and mental setting in which the work is performed.

Directors can assist representatives with satisfying their needs at work by figuring out which needs an individual is attempting to fulfill at work. It is the chief's obligation to guarantee that the individual gets results that help to fulfill those necessities when the individual performs at an elevated level and enables the association to accomplish its objectives. By doing these things, directors can persuade workers to perform at a significant level. Directors need to adjust the interests of individual individuals to the interests of the association in general. Likewise, Herzberg's model stresses the differentiation among inherent and extraneous inspiration, which is significant for administrators to consider in structuring and advancing employments.

3 0
1 year ago
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