Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer all 19 Assume a manufacturing company is deciding whether to make or buy a component part. Which of the following indicatos the need

please answer all
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
19 Assume a manufacturing company is deciding whether to make or buy a component part. Which of the following indicatos the need to include an opportunity cost when making the decision? 8 015322 Multiple Choice If the company buy the part instead of making an) it wil'erpand the unused capacity within ts plant the company buy the part instead of making it can use now available capacity to introduce and produce another prottable product If the company buy the part instead of making it will pay a price to the supplier that is less than the full manufacturing cost of the part the company buys the part instead of making in t will continue to pay the Malay of the plant manager Assume a manufacturing company is deciding whether to accept or reject a special order opportunity. Which of the following statements is true? 20 Multiple Choice Oussa The financial analysis should include an allocmed amount of feed manufacturing overhead cost The financial analysis should include the incremental costs incurred to run the order The financial analysis should exclude variable and faed overhead costs because they are indirect costs The financial analysis should include an allocated amount of fived manufacturing overhead cost plus an allocated amount of the company's general administrative expenses Final CE FEOGUCE $80 $65 $ 35 $ 26 2.5 3.0 Selling price per unit Variable cost per unit Machine-hours per unit COQUE $ 52 $20 1.25 21 The company has only 2.800 machine hours available and unlimited demand for each of its three products. The highest total contribution margin that the company can earn if it makes optimal use of its constrained resource is closest to SU00 Multiple Choice $35860 O S60 350.400 547600 Assume that each year a company normally produces and sells 80,000 units of its only product for $40 per unit. The company's average unit costs at this level of activity are given below: 22 S449 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $9.50 10.00 2.80 5.00 1.70 4.50 $33.50 The company's relevant range of production is 70.000 - 100.000 units. It has an opportunity to sell 20,000 more units to new overseas customer. The Import duties and foreign permits associated with the order would cost $16.000. However, the only selling cost associated with the order would be $1.50 per unit What is the minimum price that the company could charge on this order and still break even with respect to this opportunity Multiple Choice 52460 $23.80 23 Assume that a company plans to introduce a new product to the market at a target selling price of $20 per unit. It is investing $4,000,000 to purchase the equipment needed to produce the product. The company has determined that the new product's target cost per unit is $1776. If the company's required rate of return on all investments is 14%, what must be its estimated annual sales volume for the new product? 0154 Multiple Choice 215.000 units 225,000 units 250,000 units 275.000 unts

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

Strategic Accounting For Management

Authors: Bob Ryan

1st Edition

1861524625, 9781861524621

More Books

Students also viewed these Accounting questions

Question

Explain how HR serves as a strategic business partner.

Answered: 1 week ago

Question

Describe a social audit.

Answered: 1 week ago

Question

Describe ethics training.

Answered: 1 week ago