Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cost accounting math. Please solve it with proper explanation: (a) Sharp Corporation produces 8,000 parts each year, which are used in the production of one

Cost accounting math. Please solve it with proper explanation:

(a) Sharp Corporation produces 8,000 parts each year, which are used in the production of one of its products.

The unit product cost of a part is $36, computed as follows:

Variable production cost $16

Fixed production cost $20

Unit product cost $36

The parts can be purchased from an outside supplier for only $28 each. The space in which the parts are now produced would be idle and fixed production costs would be reduced by one-fourth. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be: __________

b) Chavin Company had the following results during August: net operating income, $220,000; turnover, 5; and ROI 25%. Chavin Company's average operating assets were: _____

c) The following data has been provided for a company's most recent year of operations:

Return on investment 20 %

Average operating assets $ 100,000

Minimum required rate of return 15 %

the residual income for the year was closest to: ___________

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Teams Dynamics And Efficiency

Authors: Mara Cameran, Angelo Ditillo, Angela Pettinicchio

1st Edition

1032097000, 9781032097008

More Books

Students also viewed these Accounting questions

Question

2 What participation techniques are used?

Answered: 1 week ago