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iren [92.7K]
2 years ago
14

Accounting has estimated that 20% of the fixed overhead costs currently assigned to QX100 would not be needed if the company cho

se to purchase the part from an outside supplier. Preston currently has the option of purchasing the part from an outside supplier at $16.00 per unit. Based solely on a short-run financial analysis, the maximum price that Preston should be willing to pay the outside vendor for each unit of QX100 is:________
Business
1 answer:
Maurinko [17]2 years ago
7 0

Answer: $15.80

Explanation:

The preston Industries, Inc. currently manufactures part QX100, which is used in several products produced by the company. Monthly production costs for 10,000 units of QX100 are as follows:

Direct materials= $80,000

Direct labor= $20,000

Variable overhead costs= $50,000

Fixed overhead costs= $40,000

Total manufacturing costs= $190,000

Accounting has estimated that 20% of the fixed overhead costs currently assigned to QX100 would not be needed if the company chose to purchase the part from an outside supplier. Preston currently has the option of purchasing the part from an outside supplier at $16.00 per unit.

Based solely on a short-run financial analysis, the maximum price that Preston should be willing to pay the outside vendor for each unit of QX100 is $15.80

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2 years ago
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mestny [16]

Answer:

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High tech companies generally tend to diversify a lot because they need to continuously produce innovative products or improve their existing ones. E.g. Google got so large and diversified that it turned into Alphabet which owns more than 200 companies (most of them through acquisitions). Sony's largest revenue sources are gaming services, financial services and home entertainment.

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2 years ago
If abc company earned $280,000 in net income and paid cash dividends of $40,000, what are abc's earnings per share if it has 80,
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2 years ago
What is created during the design phase of ADDIE as a vehicle for feedback before moving on to the next stage?
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Answer:

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Explanation:

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