Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Remaining Time: 1 hour, 32 minutes, 35 seconds. Question Completion Status: 10 29 25 30 40 32 50 33 60 34 70 35 80 90
Remaining Time: 1 hour, 32 minutes, 35 seconds. Question Completion Status: 10 29 25 30 40 32 50 33 60 34 70 35 80 90 100 110 12 13 14 15 16 17 1801 31 > A Moving to another question will save this response. Question 22 A company should stop making a part internally and buy externally when: A the unavoidable costs are less than the avoidable costs to make the parxternally the offer to buy the part is greater than the cost to internally make the part the relevant costs to make the part is less than the cost to buy the part externally the relevant costs to make the part is greater than the cost to buy the part externally Moving to another question will save this response. re to search O t . e 9 @ DOLL F10 F11 F2 F3 F4 FA F5 F5 F6 F6 F7 F8 9 9 A tA W Question Completion Status: 20 30 40 32 60 34 70 35 80 90 100 110 12 13 14 15 16 17 18 19 20 21 22 29 23 24 25 31 33 26 27 28 The following are Hydrangea Company's cost of making and selling an item: Description Amount per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative Fixed selling and administrative A one-time only special order has been received for 800 units. The company has capacity to accept the oder and it would not affect regular sales. The sales price for the special order is $20 per unit. Total fixed costs would not be affected by this order. The variable selling and administrative costs would have to be incurred for this special order. The order would require an additional $4 per unit for specialized materials and a new machine that costs $5,000. What is the financial advantage or disadvantage of accepting the special order? A $5,800 disadvantage R$800 disadvantage $2,600 disadvantage p. $600 advantage Activate Windows Go to Settings to activate Window 2:06 PM ^ 5/11/2020 ype here to search Pieser Insert F11 F12 mes 1 hour, 21 minutes, 43 seconds. -oject Question Completion Status: 31 32 29 30 Question 25 33 34 35 25 points Gold Company currently manufactures the bike seats that are installed on its bikes. The cost to produce 400 bike seats last year were as follows: Save Are Cost per bike seat Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead A supplier has offered to provide Gold Company with all of its bike seat needs for $18 per bike seat. Fixed manufacturing overhead of $6 per bike would be unavoidable even if the company decided to accept the supplier's offer. Answer Question 1. Based on this information, what is the financial advantage or disadvantage of Gold Company buying the bike seats from the supplier instead of making internally? 2. If the buy option is selected, the company will be able to use the freed up space to generate an additional $2.500 of income each year to produce and sell more of another product. Based on this information, what is the financial advantage or disadvantage of Gold Company buying the bike seats from the supplier instead of making internally? Activate Windows - 2:08 PM to search 112020 DELL
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started