subject
Business, 06.03.2020 20:54 patrick171888

Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,000 units, are as follows: Direct materials $4.00 Direct labor $4.00 Variable manufacturing overhead $3.00 Fixed manufacturing overhead $1.00 Total cost $12.00 The fixed overhead costs are unavoidable. Suri Company has offered to sell 6,000 units of the same part to Cruise Company for $14 per unit. Assuming the company has no other use for its facilities, what should Cruise Company do? A. Buy from Suri and save $2 per unit. B. Make the part and save $6 per unit. C. Make the part and save $3 per unit. D. Make the part and save $10 per unit.

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 10:10
At the end of year 2, retained earnings for the baker company was $3,550. revenue earned by the company in year 2 was $3,800, expenses paid during the period were $2,000, and dividends paid during the period were $1,400. based on this information alone, retained earnings at the beginning of year 2 was:
Answers: 1
question
Business, 22.06.2019 18:00
When peter metcalf describes black diamond’s manufacturing facility in china as a “greenfield project,” he means that partnered with a chinese company to buy the plant . of all market entry strategies, this one carries the lowest risk. because black diamond manufactures its outdoor sports products outside the united states, what risks must its managers be aware of?
Answers: 1
question
Business, 22.06.2019 20:30
Mordica company identifies three activities in its manufacturing process: machine setups, machining, and inspections. estimated annual overhead cost for each activity is $156,960, $382,800, and $84,640, respectively. the cost driver for each activity and the expected annual usage are number of setups 2,180, machine hours 25,520, and number of inspections 1,840. compute the overhead rate for each activity. machine setups $ per setup machining $ per machine hour inspections $ per inspection
Answers: 1
question
Business, 23.06.2019 02:50
In the market for lock washers, a perfectly competitive market, the current equilibrium price is $5 per box. washer king, one of the many producers of washers, has a daily short-run total cost given by tc = 190 + 0.20q + 0.0025q2, where q measures boxes of washers. washer king's corresponding marginal cost is mc = 0.20 + 0.005q. how many boxes of washers should washer king produce per day to maximize profit?
Answers: 1
You know the right answer?
Cruise Company produces a part that is used in the manufacture of one of its products. The unit manu...
Questions
question
Mathematics, 04.11.2019 17:31
question
History, 04.11.2019 17:31
question
Mathematics, 04.11.2019 17:31
question
English, 04.11.2019 17:31
Questions on the website: 13722359