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please check these answers!!! Shelley Company manufactures Part No. 498 for use in its production line. Manufacturing cost per unit for 20,000 units of Part
please check these answers!!!
Shelley Company manufactures Part No. 498 for use in its production line. Manufacturing cost per unit for 20,000 units of Part No. 498 is as follows: The Tray Company has offered to sell 20,000 units of Part No. 498 to Shelley Company for $60 per unit. Shelley Company will make the decision to buy the part from Tray if there is an overall savings of at least $65,000 for Shelley. If Shelley accepts Tray's offer, $9 per unit of the fixed overhead allocated would be eliminated. Furthermore, Shelley Company has determined that the released facilities could be used to save relevant costs in the manufacture of Part No. 575. For Shelley Company to achieve an overall savings of $65,000, the amount of relevant costs that would have to be saved by using the released facilities in the manufacture of part No. 575 would be? $125,000 $85.000 $265.000 $25.000 Cannot be determined from the given information. If a project has a net present value of $1,000 when a discount rate of 10 percent is used, what can be concluded about the rate of return of the project? The rate of return is greater than 10 percent. The rate of return is less than 10 percent. The rate of return equals 10 percent. The rate of return is zero percent. None of the aboveStep by Step Solution
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