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Strike441 [17]
2 years ago
12

Oriole, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct

labor $17 Variable overhead 5 Fixed overhead 8 Total $30 Saran Company has contacted Oriole with an offer to sell it 4900 of the wickets for $24 each. If Oriole makes the wickets, variable costs are $22 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Oriole make or buy the wickets?
Business
1 answer:
algol132 years ago
3 0

Answer:

Oriole should buy the wickets.

Explanation:

The variable cost of producing wickets is $22/unit.

The fixed cost of production is $8/unit.

The total cost of producing wickets is $30/unit.

Saran company offers to sell 4900 units of wickets at $24.

If wickets are purchased it will cost $24/unit.

Since cost is lower when buying, Oriole should buy wickets.

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Production and sales estimates for June are as follows:
barxatty [35]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Expected sales volume (units):

Area X 4,000

Area Y 10,000

Area Z 6,000

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The total budgeted sales are the result of multiplying the sales in units for the selling price:

Total sales= selling price* number of units

Total sales= (4,000 + 10,000 + 6,000)*25= $500,000

4 0
2 years ago
It costs a meat-processing company $50,000 to produce 5,000 pounds of steak. the company's cost will be $50,009 if it produces a
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Calculating average cost of steak initially when only 5000 pounds was produced 
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8 0
2 years ago
Motorist has a flat tire and is in the process of changing it. one of the lug nuts is very tight and he is trying to remove it.
Lostsunrise [7]
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A company's sales forecast would likely consider all of the following factors except: advertising and pricing policies. top mana
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Explanation:

8 0
2 years ago
Read 2 more answers
Decko Industries reported the following monthly data: Units produced 52,000 units Sales price $ 33 per unit Direct materials $ 1
Rus_ich [418]

Answer:

$1,275,000

Explanation:

The computation of the  contribution margin is shown below:

As we know that

Contribution margin = Sales - variable cost

or

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3 0
2 years ago
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