Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $16.00 per unit. The unit cost for the business to make the part is $21.00, including fixed costs, and $12.00, not including fixed costs. If 35,822 units of the part are normally purchased during the year but could be manufactured using unused capacity, the amount of differential cost increase or decrease from making the part rather than purchasing it would be a

Answers

Answer 1

Answer:

Total relevant cost = $143,288

Explanation:

In a make-or buy decision , to determine the optimal course of action we compare the purchase  cost of the component from the external market to the relevant variable cost of internal production.  Where the relevant cost of in-house production is less than the external price, the company should  produce internally and vice versa

Differential cost per unit = 16 - 12 = $4

Total relevant cost = $4× 35,822 = $143,288

Total relevant cost = $143,288

Note the fixed cost of $10 per unit is exclude because it is not relevant ; it would be incurred either way


Related Questions

Does anyone know how much netflix Approximately pay for a movie to be on netflix ?

Answers

Answer:

Depends on the ranking

Explanation:

Consider a trader who takes a long position in a six-month forward contract on the euro. The forward rate is $1.75 = €1.00; the contract size is €62,500. At the maturity of the contract the spot exchange rate is $1.65 = €1.00. A. The trader has lost $625. B. The trader has lost $6,250 C. The trader has made $6,250 D. The trader has lost $66,287.88

Answers

Answer:

B. The trader has lost $6,250

Explanation:

Calculation to determine the amount the trader has loss

First step

You will buy at $1.75 and spend= (1.75 × 62,500) You will buy at $1.75 and spend= $109,375

Second step

But you could buy and spend= (1.65 × 62,500)

But you could buy and spend= $103.125

Now let calculate the amount the trader has loss

Loss=$103,125 - $109,375

Loss = -$6,250

Therefore The trader has lost $6,250

Organizations periodically have an external entity review the controls so as to uncover any potential problems in the controls. This process is called _____________ .

Answers

Answer: information system audit

Explanation:

The information system audit is the process through which organizations periodically have an external entity which helps in reviewing the controls in order to uncover any potential problems in the controls

In order to know how effectivene the information system controls is, the information systems audit is vital. It is required to verify the accounting records of an organization as well as the financial statements.

Pagemaster Enterprises is considering a change from its current capital structure. The company currently has an all-equity capital structure and is considering a capital structure with 30 percent debt. There are currently 2,150 shares outstanding at a price per share of $70. EBIT is expected to remain constant at $20,000. The interest rate on new debt is 10 percent and there are no taxes. a.Rebecca owns $30,100 worth of stock in the company. If the firm has a 100 percent payout, what is her cash flow

Answers

Answer:

Pagemaster Enterprises and Rebecca

If the firm has a 100 percent payout, Rebecca's cash flow is:

= $3,097.

Explanation:

a) Data and Calculations:

Outstanding shares = 2,150

Current price of shares = $70 per share

Market value of outstanding shares = $150,500 ($70 * 2,150)

Debt = 30% of $150,500 = $45,150

Equity = 1- 0.30 = 0.70 or 70%

Interest rate on new debt = 10%

Interest expense = $4,515 ($45,150 * 10%)

EBIT = $20,000

Interest   (4,515)

EBT =   $15,485

Dividend payout ratio = 100%

Rebecca's investment value = $30,100 = 20% ($30,300/$150,500 * 100)

Therefore, Rebecca's cash flow = $3,097 (20% of $15,485)

in a bad news message the reasons for the decision

are so obvious that you don’t need to mention them

come directly after the buffer and follow naturally from it

should be glossed over quickly

should be long and roundabout to cushion the negative aspects

Answers

Answer:

should be long and roundabout to cushion the negative aspects

if you are delivering bad news if it is directly affecting them they would most likely like to know why and if they can help this issue

Explanation:

mrk me brainliest please.

Cromartie Ltd. prepares its financial statements according to International Financial Reporting Standards. During 2021 the company incurred $1,245,000 in research expenditures to develop a new product. An additional $756,000 in development expenditures were incurred after technological and commercial feasibility was established and after the future economic benefits were deemed probable. The project was successfully completed and the new product was patented before the end of the 2021 fiscal year. Sale of the product began in 2020. What amount of the above expenditures would Cromartie expense in its 2021 income statement

Answers

Answer: $1,245,000

Explanation:

Going by IFRS standards, Research and Development Costs should be expensed as incurred so long as commercial feasibility has not been established.

Once this is established however, the costs after that are to be capitalized. In this scenario, the costs before feasibility are $1,245,000 so these costs are going to be expensed as periodic costs.

Oriole Company purchased for $8,767,800 a mine that is estimated to have 48,710,000 tons of ore and no salvage value. In the first year, 2,830,000 tons of ore are extracted. (a1) Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depletion cost per unit $enter the depletion cost per ton amount in dollars per ton

Answers

Answer:

the depletion cost per unit is $0.18 per ton

Explanation:

The computation of the depletion cost per unit is shown below;

We know that

Depletion cost per ton is

= (Total cost - salvage value) ÷ total estimated units

= ($8,767,800 - $0) ÷ 48,710,000

= $0.18 per ton

Hence, the depletion cost per unit is $0.18 per ton

we simply applied the above formula so that the depletion cost per ton could come

Megg Stallion wants to open an account with a balance of about 300, issued checks 50, and makes 6 deposits each month. Which bank(s) will be most fitting if she expects to always maintain a minimum of her monthly contribution and does not mind spending at most $6 per month

Answers

Answer: Regular checking account with a monthly fee $4 for an unlimited number of checks,no monthly balance required and no interest earning.

Explanation:

I searched further online and got the options. The correct option will be "Regular checking account with a monthly fee $4 for an unlimited number of checks,no monthly balance Required and no interest earning"

Since Megg has an opening balance of 300, she can't open a account that requires a minimum balance of 400. Likewise, it'll be unwise to charges $6 monthly when the balance in the account falls below 300.

Therefore, she should open this account with a monthly fee of $4 and no minimum monthly balance required since the cost of keeping the account is cheaper and better than others.

The preliminary version of a security offer that is circulated to potential buyers before SEC approval (registration) is obtained is called a: Final prospectus Shelf registration statement Due diligence draft Waiting period offer Red herring prospectus

Answers

Answer:

red herring prospectus.

Explanation:

Red herring can be regarded as preliminary prospectus that is been filed by a company that has Securities and Exchange Commission (SEC), and this is usually have connection with

initial public offering of the company (IPO). A red herring prospectus encompass most of the information pertaining to the operations as well as prospects of the company though does not include key details like security issue, that's its price as well as number of shares offered.It should be noted that The preliminary version of a security offer that is circulated to potential buyers before SEC approval (registration) is obtained is called red herring prospectus.

A stock is expected to return 8% in a normal economy, 12% if the economy booms, and lose 3% if the economy moves into a recessionary period. Economists predict a 56% chance of a normal economy, a 25% chance of a boom, and a 19% chance of a recession. The expected return on the stock is __%.

Answers

Answer: 6.91%

Explanation:

Expected return = Sum of (Probability of state of economy * Return given state of economy)

= (56% * 8%) + (12% * 25%) + (19% * -3%)

= 4.48% + 3% - 0.57%

= 6.91%

enjing purchases a bond for $2,000 with 12 remaining $40 quarterly coupon payments. The bond broker who sells her the bond reassures her that she will earn a return of 3% per quarter but does not disclose the bond's par value. What par value would result in the return the bond broker promises

Answers

Answer:

Wenjing

The par value that would result in the return the bond broker promises is:

= $1,333.

Explanation:

a) Data and Calculations:

Bond amount paid = $2,000

Quarterly coupon payments = $40

Remaining coupon payments = 12

Bond maturity period = 3 years (12/4)

Promised returns per quarter = 3%

The implication is that the bond's annual interest rate = 12% (3% * 4 quarters)

Par value of bond = Quarterly premium/Quarterly returns in percentage = $1,333 ($40/0.03)

Check this out: 3% of $1,333 = $40

Pretax Income From Percentage-Of- Completion Completed Contract Difference 2017 $1,024,000 $657,000 $367,000 2018 1,280,000 821,250 458,750 (a) Incorrect answer iconYour answer is incorrect. Assuming that the tax rate is 40%, what is the amount of net income that would be reported in 2018

Answers

Answer: $768,000

Explanation:

In 2018 the Net income is based on the pretax income from percentage of completion of $1,280,000.

Net income = Pretax income * ( 1 - tax rate)

= 1,280,000 * (1 - 40%)

= $768,000

Recording Transactions Affecting Stockholders’ Equity
King Corporation began operations in January 2014. The charter authorized the following capital stock:
Preferred stock: 10 percent, $10 par, authorized 40,000 shares
Common stock: $5 par, authorized 85,000 shares
During 2014, the following transactions occurred in the order given:
a. Issued 22,000 shares of common stock to each of the three organizers and collected $9 cash per share from each of them.
b. Sold 9,000 shares of the preferred stock at $20 per share.
c. Sold 1,000 shares of the preferred stock at $20 and 2,500 shares of common stock at $10 per share.
Required:
Give the journal entries indicated for each of these transactions.

Answers

Answer:

King Corporation

Journal Entries:

a. Debit Cash $594,000

Credit Common stock $330,000

Credit Additional Paid-in Capital- Common $264,000

To record the issuance of 22,000 shares of common stock to each of the three organizers at $9 per share.

b. Debit Cash $180,000

Credit 10% Preferred stock $90,000

Credit Additional Paid-in Capital - Preferred $90,000

To record the issuance of 9,000 shares of the preferred stock at $20 per share.

c. Debit Cash $45,000

Credit 10% Preferred stock $10,000

Credit Additional Paid-in Capital- Preferred $10,000

Credit Common stock $12,500

Credit Additional Paid-in Capital-Common $12,500

To record the issuance of 1,000 shares of the preferred stock at $20 and 2,500 shares of common stock at $10 per share.

Explanation:

Data and Analysis:

a. Cash $594,000 Common stock $330,000 Additional Paid-in Capital- Common $264,000

22,000 shares of common stock to each of the three organizers and collected $9 cash per share from each of them.

b. Cash $180,000 10% Preferred stock $90,000 Additional Paid-in Capital - Preferred $90,000

9,000 shares of the preferred stock at $20 per share.

c. Cash $45,000 10% Preferred stock $10,000 Additional Paid-in Capital- Preferred $10,000 Common stock $12,500 Additional Paid-in Capital-Common $12,500

1,000 shares of the preferred stock at $20 and 2,500 shares of common stock at $10 per share.

A company projects an increase in net income of $135,000 each year for the next five years if it invests $900,000 in new equipment. The equipment has a five-year life and an estimated salvage value of $300,000. What is the annual rate of return on this investment

Answers

Answer:

the annual rate of return is 22.50%

Explanation:

The computation of the annual rate of return is shown below:

Average investment is

= ($900,000 + $300,000) ÷ 2

= $600,000

Now

Annual rate of return is

= Annual net income ÷ Average investment

= $135,000 ÷ $600,000

= 22.50%

hence, the annual rate of return is 22.50%

$82 Using the incremental method, what amount of revenue will be allocated to Math Fun in the package that contains all three products

Answers

Answer:

$28.62

Explanation:

Calculation to determine what amount of revenue will be allocated to Math Fun in the package that contains all three products

First step is to calculate the Total revenue of three product if sold individually

Total revenue= $21 + $37 + $48

Total revenue= $106

Now let calculate the allocation of revenue to Math fun based on revenue proportion

Using this formula

Revenue allocation= Packaged revenue / Total individually revenue * Revenue of Math fun

Let plug in the formula

Revenue allocation= $82/106*37

Revenue allocation= $28.62

Therefore the amount of revenue that will be allocated to Math Fun in the package that contains all three products is $28.62

A company has 5,000 shares of $100 par preferred stock and 50,000 shares of $10 par common stock outstanding. Its total stockholders' equity is $2,000,000. Its book value per common share is:

Answers

Answer:

30

Explanation:

The first step is to calculate the preferred stock

= 5,000×100

= 500,000

Therefore the book value per common share can be calculated as follows

= 2,000,000-500,000/50,000

= 1,500,000/50,000

= 30

Hence the book value per common share is 30

People who booked a tour with a company in Alaska before COMID-19 can request a cash refund or a credit that they can use later meaning the company will still have the money. If too many people ask for cash refunds, the company will go out of business. Their customers, who are all around the world and do not know each other, prefer that the company stays in business while they receive a cash refund. No one wants the company to go out of business while they still have trip credit (so they would lose their money. Based on what you know about game theory, what is the most likely outcome?
A. Everyone will cooperate, take trip credit, and the company will stay in business.
B. Everyone will honor sunk costs, take the cash refund, and the company will go out of business.
C. Everyone will honor sunk costs, take trip credit, and the company will stay in business.
D. Everyone will follow their self-interest, request a cash refund, and the company will go out of business.
E. None of these.

Answers

Answer:

A. Everyone will cooperate, take trip credit, and the company will stay in business.

Explanation:

The people have booked the tour before COMID-19. It is an uncontrollable factor which is not in the control of anyone. The people and the company will have to bear the consequences of the COMID-19 together. If the customers ask for cash refund, it is not possible for the company to repay all its customers back because the company might have made necessary arrangements for their guests.

Andes Corporation used the following data to evaluate their current operating system. The company sells items for $19 each and used a budgeted selling price of $19 per unit. Actual Budgeted Units sold 48,000 units 39,000 units Variable costs $167,000 $152,000 Fixed costs $41,000 $50,000 What is the static-budget variance of revenues

Answers

Answer:

$171,000 Favorable

Explanation:

Static-budget variance of revenues = Actual revenue - Budgeted revenue

Static-budget variance of revenues = [Units sold*Price] - [Units sold*Price]

Static-budget variance of revenues = [48000*$19] - [39000*$19]

Static-budget variance of revenues = $912,000 - $741,000

Static-budget variance of revenues = $171,000 Favorable

4. Super Smarts University has a sticker price of $45,000 per year. Kyle is applying there and uses their online net
price calculator, which calculates a net price of $38,000 per year based on the information he is provided. He's
#1 in his high school class, and he's got great SAT scores; so he's pretty sure he'll get in. How much will Kyle pay
to attend?
The exact net price
b. Within a range of $5000 of the sticker price
$0, because he'll likely get a full ride due to his high school achievements and scores
d. It's impossible to know how much he'll pay until he receives his financial aid package
a.
C.

Answers

Answer: A

Explanation:

Why would an investor prefer purchasing bonds to purchasing stocks?
A. Unlike stocks, bonds are guaranteed to return a profit to the
investor.
B. Bonds are typically less risky than stocks.
O C. Unlike stocks, when an investor owns bonds, they own a tiny part
of the company
D. Bonds are more likely than stocks to make huge profits.

Answers

Answer:

B. Bonds are typically less risky than stocks.

Explanation:

Answer: B. Bonds are typically less risky than stocks

Explanation:a. p. e. x. (just took the test)

The 10-year bond of Crown Electronics is selling at $960 each. The bond has a coupon rate of 8% and par value of $1,000. The firm will incur a $20 flotation cost for each bond issued. If the firm's tax rate is 40%, what is the after tax-cost of the firm's debt

Answers

Answer: 5.36%

Explanation:

The after-tax cost of debt refers to the interest that is paid on debt which is then less the income tax savings as a result of the deductible interest expenses.

When calculating the after-tax cost of debt, the effective tax rate of a company should be subtracted from 1, after which the difference will be multiplied by the cost of debt. This will therefore be:

= Rate (10,8% × 1000, -960 + 20, 1000) × (1-40%)

=5.36%

Which of the following are examples of internal communication?

Memos
Formal letters
Quality control alerts
Client newsletters

Answers

Answer:

Memos

Explanation:

it is confirmed . And correct

Memos are examples of internal communication. Thus, option 'A' is the correct option.

What is meant by internal communications?

Within a corporation, internal communication is a comprehensive process. In order to accomplish the objectives of the company, it covers how information is distributed laterally and up and down communication routes. Within teams and throughout the organization, communication is shared in a variety of ways (verbally, in writing, and digitally). The goal of internal communication is to provide an efficient flow of information across departments and coworkers inside a business. This holds true for all levels of management and staff.

It also functions among staff members who are communicating with one another at work. Employee engagement is increased and corporate culture is nurtured by effective internal communication. Information can be exchanged verbally or electronically using tools like the workplace intranet. An intranet's attractiveness is that it's accessible to employees and is accessible around the clock.

Learn more about communications, here:

https://brainly.com/question/29484724

#SPJ2

The cost of purchasing 310 trees and processing them up to the split-off point to yield 180,000 sheets of paper and 180,000 pencil casings is $12,500. Kenton's accounting department reported no beginning inventory. What is the total sales value at the split-off point for paper

Answers

Answer: $36000

Explanation:

You didn't complete the question but based on what I got online, the price was given as $0.20. Therefore, the total sales value at the split-off point for paper will be calculated as:

= Total sheets × Price

= 180000 × $0.20

= $36000

Therefore, the total sales value at the split-off point for paper is $36000

g On January 1, 2019, plant assets, net are $190,000. On December 31, 2019, plant assets, net are $290,000. Depreciation expense for the year is $20,000. During the year, plant assets were acquired for $155,000 with cash. There is a Gain on sale of plant asset of $10,000. What are the cash proceeds from the sale of the plant asset

Answers

Answer:

$45,000

Explanation:

Given the equation below,

Total beginning net book value of plant assets + Total plant assets purchased during that period - Total depreciation recorded of plant assets during that period - Net book value of plant assets sold during the period = Net closing book value of plant assets

Hence, we have

$190,000 - $20,000 + $155,000 - Net book value of plant assets sold during the period = $290,000

Net boom value of plant sold during the period = $35,000

We also have the equation below;

Sales proceed - Net book value of plant assets sold during the period = Gain(loss) on disposal of assets

Sales proceed - $35,000 = $10,000

Sales proceed = $10,000 + $35,000

Sales proceed = $45,000

38-41. X Corporation exchanged a warehouse located in New York for a warehouse located in New Jersey. The adjusted basis of the New York warehouse was $30,000. The fair market value of the New Jersey warehouse just prior to the exchange was $25,000. In addition to the warehouse, X Corporation also received $8,000 in cash. The amount realized by X Corporation is:

Answers

Answer:

$33,000

Explanation:

The computation of the amount realized by X corporation is given below:

= Fair market value to the exchange + cash received

= $25,000 + $8,000

= $33,000

For determining the amount realized by X corporation we simply added the above two items so that the correct amount could come

Flint Corporation issues $440,000 of 9% bonds, due in 9 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Click here to view factor tables. Compute the issue price of the bonds

Answers

Answer:

$414,282.91

Explanation:

The issue price of the bonds is also known as the Present Value (PV) or current price of the Bonds and is calculated as :

FV = $440,000

PMT = ($440,000 x 9%) ÷ 2 = $19,800

P/yr = 2

N = 9 x 2 = 18

I/yr = 10%

PV = ?

Using a Financial calculator to input the values as above, the PV or issue price will be $414,282.91

Concord Corporation reported the following information for 2016: October November December Budgeted sales $430000 $400000 $510000 Budgeted purchases $210000 $226000 $258000 Cost of goods sold is 35% of sales. Concord purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month. Accounts payable is used only for inventory acquisitions. How much is the budgeted balance for Accounts Payable at October 31, 2016? $84000 $126000 $216000 $90400

Answers

Answer:

a. $84,000

Explanation:

Given, credit purchases are 40% of the sales, will be collected in the following month

Credit purchase = Budgeted purchase * 40%

Credit purchase = $210,000 * 40%

Credit purchase = $84,000

So, the budgeted balance for Accounts Payable at October 31, 2016 is $84,000.

On January 1, year 8 Harper Co. finances the purchase of equipment by issuing a $15,000 non-interest-bearing note payable. The note will be paid off in 10 equal annual installments beginning on December 31, year 8. The market rate of interest for notes of this type is 5%. Considering the information below, at what amount should Harper Co. report the equipment on its balance sheet dated December 31, year 8

Answers

Answer: $11583

Explanation:

The amount that Harper Co. should report the equipment on its balance sheet dated December 31, year 8 will be calculated thus:

= Amount of annual instalment × PV of ordinary annuity of $1 at 5% for 10 periods

= (15000/10) × 7.72173

= 1500 × 7.72173

= 11582.595

= 11583

Therefore, the amount will be $11583

The Neptune Company offers network communications systems to computer users. The company is planning a major investment expansion but is unsure of the cost of equity capital as it has no publicly-traded equity. Your assignment is to determine an appropriate equity cost. List and explain the steps you will need to take to complete this assignment.

Answers

Answer:

Collect estimates of beta for firms in the same businessExplanation:

Cynthia is a hospitality worker in the lodging industry who prefers to cater to small groups of people. She might want to open a

a) motel.
b) bed and breakfast.
c) hotel.
d) resort.

Answers

Answer:

b) bed and breakfast.

Explanation:

A bed and breakfast is actually a type of lodging which offers overnight accommodation and breakfast for its customers. They are not usually a public establishment and do not require much rooms as they typically have about four to six rooms.

Therefore, because Cynthia is a hospitality worker that works in the lodging industry, and also likes to cater to a small group of people, she would likely open a bed and breakfast.

Answer:

bed and breakfast.

Explanation:

edge 2022

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Unlike homogeneous solutions, theparticles in a colloid are [?] and [ ]through a semi-permeable membrane.ABvisibleinvisible seven tenths written is standard form is 70.is it true or false? Select the correct answer from each drop-down menu What is the value of i^20+1?A. 1B. -1C. -iD. i In the center of the Milky Way galaxy is aA You can't wearshoes inside the house.A. you'reB. yourC. you areD. your'e Use the following function rule to find f(-62). help plz!! Which is an example of what critics of the war called escalation?A. In March 1965, there were 60,000 U.S. soldiers in Vietnam; in early 1969, there were over half a million U.S. soldiers in Vietnam.B. The U.S. used a bombing campaign that destroyed buildings, villages, bridges, and morale in North Vietnam.C. The Viet Cong was able to quickly replace soldiers it lost in battle.D. President Johnson asked for a tax increase to cover the costs of the war. Answer choices are A. 4B. 6C. 8D .10 plzzzzzzz help for a brainly Anton is drawing a flag of Switzerland, which has a square shape, for a school project. If he wants the flag to have sides that are 16 inches long, what will be the area of the completed flag?A.) 64 inches squaredB.) 128 inches squaredC.) 256 inches squaredD.) 512 inches squaredPlease give a SIMPLE explanation as to what the answer is :) What is the source of energy in nuclear weapons?A. CombustionB. GravityC. FusionD. Fission 8.612 a rational number 7 times 6 pls answer this What is the measure of x? Answer is in decimal Name two reasons why bands/orchestras were formed in the concentration camps. For each branch of government, give an example of how each affects your daily life at home, school, and/or in the world. Write the function for the graph.(1,12)(0,3)O A. f(x) = 3(12)^xO B. f(x) = 4(3)^xO C. f(x) = 3(4)^xD. f(x) = 4(12)^x Evaluate m) (x) for x = -3.=Im (-3) = please help i will give brainliest