Collins Co. produces a part used in the manufacture of one of its products. The unit product cost is $30, computed as follows: Direct materials, direct labor, and variable overhead $18 Fixed overhead $12 Total $30 An outside supplier has offered to provide the parts for only $22 each. If the parts are purchased from the outside supplier, (1) the company estimates that 25% of the fixed overhead cost above could be eliminated; (2) the company can use the freed capacity to launch a new product, earning a contribution margin of $7 per unit. Based on these data, the per-unit dollar financial advantage or disadvantage of purchasing from the outside supplier would be: Multiple Choice $1 financial disadvantage $5 financial advantage $6 financial advantage $2 financial disadvantage

Dollywood corporation accumulates the following data concerning a mixed cost, using miles as the activity level. miles driven total cost january 10,000 $16,500 february 8,000 $14,500 march 9,000 $12,500 april 7,000 $12,000 compute the variable and fixed cost elements using the high-low method

Acompany that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. prior to buying the new equipment, the company used 6 workers, who produced an average of 79 carts per hour. workers receive $16 per hour, and machine coast was $49 per hour. with the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour while output increased by four carts per hour. a) compute the multifactor productivity (mfp) (labor plus equipment) under the prior to buying the new equipment. the mfp (carts/$) = (round to 4 decimal places). b) compute the productivity changes between the prior to and after buying the new equipment. the productivity growth = % (round to 2 decimal places)

Describe how to write a main idea expressed as a bottom-line statement