subject
Business, 30.12.2021 04:10 allysoftball4878

Gilberto Company currently manufactures 87,000 units per year of one of its crucial parts. Variable costs are $3.05 per unit, fixed costs related to making this part are $97,000 per year, and allocated fixed costs are $84,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $4.25 per unit guaranteed for a three-year period. Required:
a. Calculate the total incremental cost of making 87,000 and buying87,000 units.
b. Should the company to manufacture the or should it buy the part from the outside suppller?

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 19:00
What does the consumer price index measure? a. the change in prices of all goods and services over time b. the change in prices of specific goods and services over time c. the change in prices of final goods and services over time
Answers: 3
question
Business, 22.06.2019 02:10
Materials purchases (on credit). direct materials used in production. direct labor paid and assigned to work in process inventory. indirect labor paid and assigned to factory overhead. overhead costs applied to work in process inventory. actual overhead costs incurred, including indirect materials. (factory rent and utilities are paid in cash.) transfer of jobs 306 and 307 to finished goods inventory. cost of goods sold for job 306. revenue from the sale of job 306. assignment of any underapplied or overapplied overhead to the cost of goods sold account. (the amount is not material.) 2. prepare journal entries for the month of april to record the above transactions.
Answers: 1
question
Business, 22.06.2019 03:00
Match the given situations to the type of risks that a business may face while taking credit.(there's not just one answer)1. beta ltd. had taken a loan from a bankfor a period of 15 years, but its salesare gradually showing a decline.2. alpha ltd. has taken a loan for increasing its production and sales,but it has not conducted any researchbefore making this decision.3. delphi ltd. has an overseas client. the economy of the client’s country is going through severe recession.4. delphi ltd. has taken a short-term loanfrom the bank, but its supply chain logistics are not in place.a. foreign exchange riskb. operational riskc. term of loan riskd. revenue projections risk
Answers: 1
question
Business, 22.06.2019 09:00
Almost 80% of business owners are clueless about the competition, resulting in a) lost market share and customers. b) needless lawsuits. c) uninspired products. d) lack of perseverance
Answers: 2
You know the right answer?
Gilberto Company currently manufactures 87,000 units per year of one of its crucial parts. Variable...
Questions
question
Mathematics, 17.11.2020 05:30
question
Social Studies, 17.11.2020 05:30
question
Computers and Technology, 17.11.2020 05:30
question
Mathematics, 17.11.2020 05:40
Questions on the website: 13722360