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pickupchik [31]
1 year ago
8

Taser Industries must decide whether to make or buy some of its components. The costs of producing 175,000 battery packs for its

product are as follows: Direct Materials $15,000 Direct Labor $5,000 Variable overhead $6,000 Fixed overhead $9,000 The company has an opportunity to purchase the battery packs for $0.18 per unit, which would eliminate all variable costs, and $2,000 of fixed costs. Based on your analysis, what is the net income increase or decrease if the company purchases the battery packs?
A. an increase in net income of $3,500
B.a decrease in net income of $3,500
C.an increase in net income of $5,500
D.an increase in net income of $7,000
Business
1 answer:
Alenkasestr [34]1 year ago
5 0

Answer:

The correct answer is B.

Explanation:

Giving the following information:

The costs of producing 175,000 battery packs for its product are as follows:

Direct Materials $15,000

Direct Labor $5,000

Variable overhead $6,000

Fixed overhead $9,000

The company has an opportunity to purchase the battery packs for $0.18 per unit, which would eliminate all variable costs and $2,000 of fixed costs.

Make in house:

Total cost= 35,000

Buy= 175,000*0.18 + 7,000 (unavoidable fixed costs)= 38,500

Effect on income= 35,000 - 38,500= 3,500 decrease

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Daniel [21]

Answer:

The correct answer is A) top quality.

Explanation:

There are generally two sales approaches: the first, product-oriented. This takes into account its own characteristics in terms of presentation, quality and utility; and the second, people-oriented, where the real needs of the consumer are studied to determine how he uses the good in order to orient himself towards satisfying a need.

The example clearly shows that the orientation with minimum unit costs was mainly focused on the client, so that the first impression is that of a lower price to motivate their purchase decision. For his part, Orchard clearly shows a product orientation, because he tries to offer quality by sacrificing other variables to supply a need.

6 0
1 year ago
Read 2 more answers
You are the manager of a midsized company that assembles personal computers. You purchase most components—such as random access
lapo4ka [179]

Since the company is a mid sized company, with the increase in the price of the inputs of the RAM, the price of the RAM will definitely increase.

<u>Explanation:</u>

1) Since the price of the inputs of a particular good are one of the most important factors which determine the price of the goods, so with the increase in the inputs of the price of the inputs of the good, the price of the good will increase.

2) With the fall in the income of the consumer, the expenditure of the consumer will also decrease. So the demand of the RAM will fall because of two reasons a) increase in the price of RAM and 2) with the fall in the income of the consumer.

6 0
1 year ago
Which expense might you pay when you rent? A. property taxes B. utilities C. maintenance D. PMI
IrinaK [193]
Utilities. Since you don't own the property, you are not responsible for paying property taxes. Your landlord should be responsible for any maintenance. PMI is insurance paid on a mortgage - which you wouldn't have as a renter.
8 0
2 years ago
Fuller Food Company distributes coupons which may be presented (on or before a stated expiration date) to grocers. The grocers a
MrRissso [65]

Answer:

1. c.$124,000

2. e.$46,000

Explanation:

The Fuller company has issued two bonds with separate coupons. The liability for unredeemed bond at December 31, 2012 is $124,000.

The value of bond when issued is $720,000

Value of bond at expiration date is $300,000

720,000 / 300,000 = 2.4

2.4 * 190,000 = 456,000 / 3.67 years

= $124,000

Case corporation has issued bond with value 94 issued at par with 10% coupon rate.

Using the amortization bond table we get $46,000.

$(100000 / 94 ) * 10% = 106.38 * 5 years

= 5,319.20 * 8.64 amortizing rate

= $46,000

4 0
1 year ago
A 9% coupon bond with an ask price of 100:00 pays interest every 182 days. If the bond paid interest 112 days ago, the clean pri
alina1380 [7]

Answer:

$100

Explanation:

The computation of the clean price is shown below:

As we know that

Clean Price = Dirty Price − Accrued Interest

where,

Dirty price is

= Ask price + Accrued interest

The ask price is $100

And, the accrued interest is

= $100 × 9% × 112 days ÷ 360 days

= $2.74

Now the dirty price is

= $100 + $2.74

= $102.74

Therefore the clean price of the bond is

= $102.74 - $2.74

= $100

Or we can say that the ask price equivalent to the clean price of the bond as both are the quoted prices

4 0
2 years ago
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