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iVinArrow [24]
2 years ago
3

You are given the following information:COSTSMAKE OPTIOnBUy OPTIOnFixed Cost$25,000$3,000Variable Cost$8$12a.Find the break-even

quantity and the total cost at the break-even point.b.If the requirement is 4,500 units, is it more cost-effective for the firm to buy or make the components? What is the cost savings for choosing the cheaper option?c.If the requirement is 6,000 units, is it more cost-effective for the firm to buy or make the components? What is the cost savings for choosing the cheaper option?
Business
1 answer:
masha68 [24]2 years ago
5 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Make in house

Fixed Cost= $25,000

Variable Cost= $8

Outsource

FIxed cost= $3,000

Variable cost= $12

a. Find the break-even quantity and the total cost at the break-even point.

in house cost= 25000+8*q

Outsource= 3000+12*q

25000+8*q=3000+12*q

22000=4q

5500=q

In house= 25000+8*5500= $69000

Oursource= 3000+12*5500= $69000

b. Q=4500

In house= 25000+8*4500= $61000

Oursource= 3000+12*4500= $57000

At this given quantity, it is cheaper to outsource. Costs saving sum up to $4000

c. q=6000

In house= 25000+8*6000= $73000

Oursource= 3000+12*6000= $75000

At this given quantity, it is cheaper to make in-house. Costs saving sum up to $2000

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6. What aggregate planning difficulty that might confront an organization offering a variety of products and/or services would n
sukhopar [10]

Explanation:

Aggregate planning can be defined as a marketing tool whose objective is to develop a 6 to 18 month plan for the organizational production process, in order to plan in advance the need for the amount of materials and resources that a company needs to have in each period time, so costs are reduced.

Some aggregate planning decisions involve the amount of subcontracting items, the amount of outsourcing, overtime hours, the amount of inventory to be maintained and to be accumulated in a certain period, etc.

Aggregated planning helps the organization to meet demand and supply in a period of time, and it is also possible to be an instrument of influence on supply and demand, so an organization that offers a variety of products and / or services could face difficulties management of all the variables necessary for the production of varied items, as this planning takes time, affects costs, customer satisfaction, synchronization of the supply chain, etc.

8 0
2 years ago
Rodrigo has worked for Three Brothers Construction for over 10 years and was recently was promoted to the position of foreman. H
dolphi86 [110]

Answer: Supervisory Management.

Explanation:

Rodrigo is now a member of the Supervisory Management of his company. The Supervisory managers are individuals that oversee other employees within a specified department in a company, to ensure they are carrying out their jobs effectively.

3 0
2 years ago
On January 12, JumpStart purchased $870 in office supplies. (a) Journalize the transaction as if JumpStart paid cash. Jan. 12 (b
Mumz [18]

Answer:

Part a : If JumpStart paid cash

Office Supplies $870 (debit)

Cash $870 (credit)

Part b : If JumpStart placed it on account

Office Supplies $870 (debit)

Account Payable $870 (credit)

Part c : If JumpStart pays the amount due

Account Payable $870 (debit)

Cash $870 (credit)

Explanation:

Part a : If JumpStart paid cash

Recognise an expense for Office Supplies and reduce the assets of cash to reflect outflow of economic benefits in form of cash

Part b : If JumpStart placed it on account

Recognize an expense for Office Supplies and also recognise a Liability - Accounts Payable to reflect a present obligation created by JumpStart to its Supplier

Part c : If JumpStart pays the amount due

Derecognise the Liability - Accounts receivable since the liability has been settled and reduce the assets of cash to reflect outflow of economic benefits in form of cash due to settlement of Account

6 0
2 years ago
Blossom Enterprises reported cost of goods sold for 2020 of $1,517,400 and retained earnings of $5,576,300 at December 31, 2020.
Inga [223]

Answer:

$1,448,350 ;  $5,539,760        

Explanation:

The corrected amount is as follows

For cost of goods sold

= Reported cost of goods sold - overstated value of ending inventory in year 2019 + overstated value of ending inventory in year 2020

= $1,517,400 - $105,590 + $36,540

= $1,448,350    

For retained earnings

= Reported retained earning -  overstated value of ending inventory in year 2020

= $5,576,300 - $36,540

= $5,539,760          

8 0
2 years ago
Your customer purchases FYZ 4% convertible preferred stock at $60 per share. The conversion price is $10. With the common stock
KIM [24]

Answer:

$9

Explanation:

Calculation for how much the common shares of FYZ are trading

First step is to find the conversion ratio

Using this formula

Conversion ratio =Market price of the convertible+Conversion price)/Conversion price

Let plug in the formula

Conversion ratio=$70/$10

Conversion ratio=7

Second step is to calculate for the Parity price of the common stock

Using this formula

Parity price=Market price of the convertible / conversion ratio

Let plug in the formula

Parity price=$70/7

Parity price=$10

Last step is to calculate how much the common shares of FYZ are trading

Using this formula

Common shares =Parity price-Common stock trading point

Let plug in the formula

Common shares =$10-1

Common shares=$9

Therefore the common shares of FYZ are trading at $9

6 0
2 years ago
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