Answer:
Considering the allocate fixed cost, it would not be a good option.
It will generate a financial disadvantage of 22,950
Explanation:
![\left[\begin{array}{cccc}&produce&buy&Differential\\Purchase&&282,600&-282,600\\Variable Cost&270,000&&270,000\\Fixed Cost&68,400&32,850&-35,550\\Total Cost&338,400&315,450&-22,950\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%26produce%26buy%26Differential%5C%5CPurchase%26%26282%2C600%26-282%2C600%5C%5CVariable%20Cost%26270%2C000%26%26270%2C000%5C%5CFixed%20Cost%2668%2C400%2632%2C850%26-35%2C550%5C%5CTotal%20Cost%26338%2C400%26315%2C450%26-22%2C950%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Fixed overhead; 38 x 1800 = 68,400
There is a portion of 35,550 fixed cost which is tracable to the real wheel assembly line thus, will be eliminated.
But 32,850 would not.
Considering this, it would not be a good option to stop the assembly line and purchase the component
Answer:
Actual Direct material cost = $81,500
Actual Direct labor cost = $187,500
Actual manufacturing overhead = $272,000
Explanation: kindly see attached picture for detailed explanation.
Variances ; Standard Cost Unfavorable Favorable Direct materials $ 80,000 Price variance $ 4,500 Quantity variance $ 3,000 Direct labor 184,000 Rate variance 2,700 Efficiency variance 6,200 Manufacturing overhead 271,000 Spending variance 4,000 Volume variance 5,000 Determine the actual costs incurred during the month of May for direct materials, direct labor, and manufacturing overhead.
Answer:
$93,940.85
Explanation:
Adjusted present value is the sum of net present value of after tax cash flow and net present value of tax shield.
First compute after tax cash flow:
Cash inflow = $478,000
Cash cost = 68% of $478,000 = $325,040
Pre-tax profit = 478,000 - 325,040 = $152,960
Tax = 34 %
After tax cash flow = 152,960 (1 - 0.34) = $100,953.60
Net present value of after tax cash flow = 
= 
= $25,940.85
Present value of tax shield = Amount of debt × tax rate
= 200,000 × 0.34
= $68,000
Adjusted present value = 28,940.85 + 68,000
= $93,940.85
Answer:
Facilitative decision making decison style is the correct answer to the given question.
Explanation:
The facilitative style of action-making represents a collaborative effort between the members and the stakeholders, each giving feedback for mutual the decision taking.
- It is critical that stakeholders provide access to data necessary for decision taking with the help of Facilitative decision style the zach take the decision and solved the given problem .
- The main objective of Facilitative decision-making approach results in better strategies also the better team purchase-in and more efficient and effective team-building are enhanced .
Answer:
The value of this firm to shareholders is $70240
Explanation:
Using expected value approach, the value of the firm can be computed as :
(Optimistic value*its probability)+(pessimistic value*its probability)
optimistic value=$139000 and its probability is 68%=0.68
Pessimistic value=$121000 and its probability is 1-0.68=0.32
Expected value=($139000*0.68)+($121000*0.32)
=$133240
However, the value to shareholders is the expected value of the firm less debt of $63000
Equity value=$133240-$63000
=$70240