subject
Business, 13.07.2021 20:30 alexislringler

XYZ Corporation makes 6,000 units of part G25 each year. This part is used in one of the company's products. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials $ 5 Direct labor $ 4 Variable manufacturing overhead $ 1 Supervisor's salary $ 2 Depreciation of special equipment $ 4 Allocated general overhead $ 2 An outside supplier has offered to make and sell the part to the company for $18 each. If this offer is accepted, the supervisor's salary and all the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $3,000 of these allocated general overhead costs would be avoided. In addition, the space used to produce part G25 would be used to make more of one of the company's other products, generating an additional segment margin of $15,000 per year for that product. The annual financial disadvantage for the company as a result of buying part G25 from the outside supplier should be:

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 19:40
Sean has placed a job ad and is now interviewing potential employees. which of the following questions is he legally allowed to ask during the interview? do you have any disabilities that will require special accommodation? how many children do you have? where did you earn your degree and how has it prepared you for this position? is this your maiden name that you have listed on the job application?
Answers: 2
question
Business, 21.06.2019 20:20
Accounts receivable arising from sales to customers amounted to $40,000 and $55,000 at the beginning and end of the year, respectively. income reported on the income statement for the year was $180,000. exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is
Answers: 2
question
Business, 22.06.2019 04:30
How does your household gain from specialization and comparative advantage? (what is produced, what is not produced yet paid to a specialist to produce? )
Answers: 3
question
Business, 22.06.2019 14:40
In the fall of 2008, aig, the largest insurance company in the world at the time, was at risk of defaulting due to the severity of the global financial crisis. as a result, the u.s. government stepped in to support aig with large capital injections and an ownership stake. how would this affect, if at all, the yield and risk premium on aig corporate debt?
Answers: 3
You know the right answer?
XYZ Corporation makes 6,000 units of part G25 each year. This part is used in one of the company's p...
Questions
question
Mathematics, 08.12.2021 02:10
question
English, 08.12.2021 02:10
question
Mathematics, 08.12.2021 02:10
question
Mathematics, 08.12.2021 02:10
Questions on the website: 13722363