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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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A jewelry store has a discount for customers who purchase multiple pairs of earrings: after paying full price for one pair of ea
scZoUnD [109]

Answer:

Correct Statement is D

Explanation:

Provided information,

The Jewelry Store sells pair of earrings, where the discount is of 15% on the price of second pair.

This states that the consumer will always be willing to pay the cost of first pair in full, whenever the customer buys such pair, whether alone or with some additional pair.

Thus the willingness to pay for any pair after purchase of first pair of earrings will always be less than the cost of first pair, as the amount paid for first pair is $40 and that for second pair costing $40 but purchased for $34 as because there was discount on second pair.

In the given case John purchased the second pair because there was discount, else John has bought the same pair for $40.

Thus his willingness for second pair is always lower than the price of first pair.

Correct Statement is D

3 0
2 years ago
Dixie South currently pays an annual dividend of $1.46 a share and plans on increasing that amount by 2.75 percent annually. Nor
sesenic [268]

Available Options are:

A. Market price.

B. Dividend yield.

C. Capital gains yield.

D. Total return.

E. Real return.

Answer:

C. Capital gains yield.

Explanation:

This can be explained using the Dividend valuation model formula, which is as under:

Po = Dividend * (1+g) / (R-g)

The reason is that the dividend paid out of Northern Culture has higher growth rate than the Dixie South which means that if the growth is higher the increase in the share value is higher. The growth in share value will increase the share price significantly because increase in growth increases the nominator by (1+g) and decreases the denominator by g. This means that the capital gains (Stock sale price - Stock purchase price) will increase significantly and hence the capital gains yield will increase.

As the company Northern has higher dividend growth rate, it will have higher Capital gains yield than the the stock of Dixie.

3 0
2 years ago
Tu Corporation is investigating automating a process by purchasing a machine for $423,000 that would have a 9 year useful life a
raketka [301]

Answer:

simple rate of return = 16.4 %

so correct option is B. 16.4%

Explanation:

given data

purchasing a machine = $423,000

useful life =  9 years

cash operating costs = $112,000 per year

yielding = $27,000

annual depreciation = $47,000

to find out

simple rate of return on the investment

solution

we get here simple rate of return on the investment that is express as

simple rate of return = \frac{annual\ incremental\ net\ operating\ income}{initial\ investment}    .............................1

put here value we get

simple rate of return = \frac{112000-47000}{423000-27000}

solve it we get

simple rate of return = 16.4 %

so correct option is B. 16.4%

5 0
2 years ago
An organizational chart of a company shows vice presidents with responsibility for key areas such as design, manufacturing, sale
Romashka-Z-Leto [24]

Answer: Functional

Explanation: The functional structure of an organisational chart places people with similar skills who perform similar activities in a group under a common manager who answers to an executive a level up in the hierarchy who may oversee multiple departments. Therefore, an organizational chart of a company showing vice presidents with responsibility for key areas such as design, manufacturing, sales, marketing, and after-sales support would reflect a functional structure.

An advantage of the functional structure is that employees are allowed to focus their collective energies on executing their roles as a department but sometimes they might develop tunnel vision (seeing the company solely through the lens of the employee’s job function) and often at times there is a lack of inter-departmental communication.

6 0
2 years ago
You have a firm fixed price contract with a clause stating that all changes in the scope of work must be written. One of your te
Juli2301 [7.4K]
I would fire them because they broke the clause and caused issues because of it
7 0
2 years ago
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