Gilberto Company currently manufactures 84,000 units per year of one of its crucial parts. Variable costs are $2.90 per unit, fixed costs related to making this part are $94,000 per year, and allocated fixed costs are $81,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $4.10 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 84,000 and buying 84,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier

Answers

Answer 1

Answer:

Cost to make $337,600

Cost to make $344,400

The company should make the product

Explanation:

Calculation to determine the total incremental cost of making 84,000 and buying 84,000 units

COST TO MAKE

Relevant per unit Relevant fixed cost Total relevant cost

Variable cost per unit $2.90 - $243,600(84000*$2.90)

Fixed manufacturing costs - $94,000 $94,000

Cost to make $337,600

($243,600+$94,000)

COST TO BUY

Relevant per unit Relevant fixed cost Total relevant cost

purchase per unit $4.10 - $344,400[$4.10*84000]

Cost to make $344,400

Based on the above calculation the cost of buying is higher than the cost of making therefore the company should MAKE the product.


Related Questions

A country that imposes high tariffs encourages foreign-based companies to import goods A country that imposes high tariffs encourages foreign-based companies to import goods True False

Answers

It is false that a country that imposes high tariffs encourages foreign-based companies to import goods.

Tariff basically refers to a tax imposed on imports or exports of goods in the country by the Federal government.

Sometime, the tariffs are imposed to control the rate of importation into the country to prevent dumping.

However, high tariff will lead to high cost of sales because the seller has to consider tax incurred.

Therefore, it is false that a country that imposes high tariffs encourages foreign-based companies to import goods

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The growth rate is a measure of the rate at which a countrya's population is increasing. Please select the best answer from the choices provided. T F.

Answers

The growth rate is a measure of the rate at which a country's population is increasing.

The growth rate of a population measures the percentage increase in the value of a quantity.

For example, if the growth rate of a population is 10%, if the town currently has 1000 people, next year population would be: 1000(1.1) = 1100 people.

Factors that leads to increases in a population

Migration Birth

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Answer:

This is true.

Explanation:

Edg. 2022

the document that states that the bank will pay a specified sum of money to a beneficiary, normally the exporter, on presentation of particular, specified documents is called the

Answers

The letter of credit is the financial document which tells that a bank will pay a specified sum of money to a beneficiary

Letter of credit is also called documentary credit or bankers commercial credit.

The financial document called "Letter of credit" is a a letter written by a financial institution which authorizing another institution to pay someone a sum of money.

This document is usually a mode of payment used for the importation of visible goods.

In conclusion, the document called "letter of credit" is the financial document which tells that a bank will pay a specified sum of money to a beneficiary

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where in the universe did the big bang take place?

Answers

There's no exact spot that the Big Bang happened. In fact, the Big Bang happened everywhere in the Universe. The problem generally comes from the term "Big Bang". It brings to mind explosions, detonations, balloons being popped, and everything being blown out to chickenbasket hades.

Answer:

The dig dang happened everywhere in the universe

Explanation:

A couple is required by their lender to have a down payment of 20% of the purchase price of the home they want to buy. If the couple has saved $35,000, what is the most expensive home the couple can afford to buy? a. $63,000 b. $140,000 c. $175,000 d. $210,000 Please select the best answer from the choices provided A B C D.

Answers

The most expensive home the couple can afford to buy a home is $175,000 having a down payment of 20%.

The computation of the total amount of expenses for home

Given,

The percentage of the down payment from the complete amount of purchase is 20%.

The total amount of saving by the couple is $35,000.

For calculating the maximum amount for buying the most expensive home the total amount of saving is assumed to be equal to the percentage of down payment.

Thus, if $35,000 is equal to 20% of the total amount then what will be the total amount?

This is computed as follows:

[tex]\begin{aligned}\text{Amount}&=\dfrac{\text{Total Savings}}{\text{\% of Down Payment}}\times100\\&=\dfrac{\$35,000}{20}\times100\\&=\$175,000\end{aligned}[/tex]

Therefore, the maximum amount that can be afforded by the couple to buy the most expensive home is $175,000.

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Answer:

Answer is C $175,000 i believe could be wrong

Explanation:

In the system selection process, the step of reducing the number of potential vendors that a healthcare organization is considering to just a few finalists is called

Answers

(Answer) Down selection. *

br.uh its like 12:00 am for me.

Answers

Answer:

But for Me its 10:00 AM now

Anyways thnks for points!!!

11.
can best be described as the total value of all final goods, services, and structures produced in an
economy in a one-year period.
A. GDP
B. CPI
C. Real GDP
D. Nominal GDP

Answers

Answer:

GDP

Explanation:

GDP can be described as the total value of all final goods, services, and structures produced in an economy over a period of one yearThe full form of GDP is Gross Domestic product

An estate left the decedent's farm to eight grandchildren. Because no form of ownership was specified in the decedent's will, each of the grandchildren receives A) a right of possession to one-eighth of the property. B) a one-eighth interest in the property as a tenant in common. C) a severalty interest in one-eighth of the property. D) a joint interest in the entire property.

Answers

A right of possession to one-eighth of the property is what each of the eight

grandchildren will receive.

In cases where there is no will which specifies ownership then the estate will

have to be shared equally between the parties involved. They can however

do what they want with the share allocated to them.

In cases where there is no will and no relative, then it goes to the state. This

case involves eight grandchildren and it gives them the right to own one-

eighth of the property as a result of equal sharing.

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Determine the characteristic for each market segment. This segment contains a common element that unifies its members. This segment contains an element that separates it from other segments. This segment is based on the response of members with a certain outlook. distinction arrowRight homogeneity arrowRight reaction

Answers

Answer:

Market segmentation is a marketing term that refers to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.

KEY TAKEAWAYS

Market segmentation seeks to identify targeted groups of consumers to tailor products and branding in a way that is attractive to the group.

Markets can be segmented in several ways such as geographically, demographically, or behaviorally.

Market segmentation helps companies minimize risk by figuring out which products are the most likely to earn a share of a target market and the best ways to market and deliver those products to the market.

With risk minimized and clarity about the marketing and delivery of a product heightened, a company can then focus its resources on efforts likely to be the most profitable.

Explanation: I was Just taking a test on this

Answer:

Got this correct on the Test.

Explanation:

distinction--->this segment contains an element that separates it from other segments.

homogeneity--->this segment contains a common element that unifies its members.

reaction--->this segment is based on the response of members with a certain outlook.

What is a consumer product?

Answers

Stuff that is bought by ppl

One disadvantage of using a company’s tuition reimbursement program is that _______.
a.
You may have to extend your contract with the company
b.
Your ongoing education costs will rise considerably
c.
It may decrease your job satisfaction if you become more skilled
d.
Ongoing education has been proven to decrease worker motivation

Answers

One disadvantage of using a company’s tuition reimbursement program is that you may have to extend your contract with the company.

Tuition reimbursement is offered by employers as a way to pay back employees for education expenses. The people who participated still have to pay out of pocket for the courses they take. At the end of the course, the employee can get back some or all of the tuition expenses.

Answer:

is A. You may have to extend your contract with the company

Explanation: I took the test and is right

Which of the following is a good example of inflation? OA. You get a flat tire on your car. OB. You work three jobs in order to pay your bills It cost you $50 to gas up your car this month. But last month it cost you OC. $85 It cost you $85 to gas up your car this month. But last month it only cost OD you S50​

Answers

Answer: C.) It cost you $85 to gas up your car this month but last month it only cost you $50

Explanation:

The international agency that administers trade agreements, facilitates trade negotiations, and helps to resolve trade disputes, is

Answers

World Trade Organziation

1. Read the following data regarding payroll deductions, and answer the questions that follow:

Lydia: $9.50/hour, worked 20 hours this pay period

Thomas: $12.50/hour, worked 40 hours this pay period

Bruce: $8.50/hour, worked 30 hours this pay period

a. Using a spreadsheet program, create a payroll spreadsheet with the information above. Be sure to include proper headings.

b. Add a “Tax (%)” column. Apply a nested IF statement to the spreadsheet to determine the percentage of taxes that needs to be deducted. For someone who makes $9.00 or less an hour, the is 5%. For someone who makes between $9.01 and $12.00 an hour, the rate is 6%. For someone who makes more than $12.01 an hour, the is 7%.

c. Describe hour you generated this column.

Answers

The hours generated are:

Lydia - 20Thomas - 40Bruce - 30

The Net Amount Payable are:

Lydia - $176.70Thomas - $465.00Bruce - $237.15

What is a Nested IF THEN ELSE Statement

This is a function/formula within Microsoft Excel Spreadsheet that allows one to carry out conditional calculations such as the one explained in the question. Please see the attached spreadsheet.

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On a school field trip, the number of students, y, is always proportional to the number of adults, x. The line representing this relationship passes through the point (8,96). What is the unit rate, and what does it represent for this situation?

Answers

The unit rate means that there are 12 students for each adult.

A linear equation is in the form:

y = mx + b

where y, x are variables, m is the rate of change and b is the initial value of y.

Let y represent the number of students and x represent the number of adults. Since y is proportional to x, hence:

y = mx

The line passes through the point (8,96):

96 = 8m

m = 12

The unit rate means that there are 12 students for each adult.

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Why do you think Zappos offers a $2,000 incentive to quit?

Answers

Answer:

Explanation:

Is there more to the question?

a company has an unbiased forecast for its demand. what does that mean?

Answers

Average of all forecast errors is 0 a company wants to use a regression analysis to forecasts the demand for the next quarter.

If country A has a comparative advantage in the production of good X over country B, then: _______________

a. country A should not trade with country B.
b. the domestic opportunity cost of producing X in country A is higher than in country B.
c. the domestic opportunity cost of producing X in country A is lower than in country B.
d. the domestic opportunity cost of producing X in country A is higher or lower than in country B.

Answers

Considering the situation described above, if country A has a comparative advantage in producing good X over country B, then: the domestic opportunity cost of producing X in country A is lower than in country B.

What is Opportunity Cost?

Opportunity cost is often used in economics to describe the profit lost when one choice or option is taken over another.

What is Comparative Advantage?

Comparative Advantage is the term used to describe the economy's capacity to produce a specific good or service at a lower opportunity cost than its trading competitors.

Therefore, given that country A has a comparative advantage in producing good X over country B, this equates to country A having a lower opportunity cost than country B.

Hence, in this case, it is concluded that the correct answer is option C.

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_____ ratios measure the degree and effect of the firm's use of borrowed funds to finance its operations.

Answers

Answer:

DEBT ratios measures the degree and effect of the firms use of borrowed funds to finance it's operations

Answer:

leverage

Explanation:

13. The primary difference between GDP and Real GDP is
A. The amount of money made from foreign investments.
B. The amount of money spent in the country from only Americans.
C. It includes the income made by all Americans.
D. It accounts for inflation.

Answers

Answer:

I think option D is correct

The United Kingdom currently has a trade deficit with New Zealand. If the U.K. pound sterling appreciates relative to the New Zealand dollar, which of the following correctly explains the effect on the trade deficit?

The trade deficit will increase, since an appreciating pound means fewer goods will be imported from New Zealand.

The trade deficit will decrease, since an appreciating pound means fewer goods will be imported from New Zealand.


The trade deficit will decrease, since an appreciating pound means more goods will be imported from New Zealand.


The trade deficit will increase, since an appreciating pound means more goods will be imported from New Zealand.

Answers

The correct answer to the given question is that the trade deficit would increase since with the appreciating pound means more goods will be imported from New Zealand.

Based on the given question, we are asked to show the effects of the trade deficit between New Zealand and UK based on the appreciation of the pound sterling relative to the New Zealand dollar.

With this in mind, we are aware that when there is a strong domestic currency, then it would encourage more imports and hamper exports, therefore, the trade deficit will increase, since an appreciating pound means more goods will be imported from New Zealand.

Therefore, the correct answer is option D

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Answer:

Economics Semester Exam

THIS IS FOR CONNECTIONS ACADEMY!!!!

QUESTIONS MAY BE SWITCHED!!!

i got a 22/31 but these are 100% correct

1. water

2. the choice between the net profit of the new production schedule and the net profit of the old production schedule

3. The opportunity cost is the consumer's benefit from purchasing the computer.

4. traditional economy- culture

command economy- central

mixed economy- elements

market economy- price signals

5. Public goods are goods and services that are non-excludable and non-rivalrous; therefore, it is not profitable or in the best interest of private businesses to provide these goods.

6. revenue

7. a percent decrease in quantity demanded greater than 100%

8. The demand curve for cell phones would shift to the right, and the demand curve for instant noodles would shift to the left.

9. The firm should choose to produce 1,200 units of output.

10. Shares of public corporations are traded on stock exchanges.

11. Consumer cooperatives pool their resources together to purchase goods in bulk. By purchasing goods in bulk, the cost of acquiring these goods is reduced for members compared to the normal cost that an individual would face when purchasing the product.

12. Money maintains purchasing power over time.

13. -The purchasing power currencies issued by state banks varied wildly from state to state.

-Monetary reserves decreased.

14. $75

15. interest

16. disability insurance

17. 255 million dollars

18. inflation or deflation

19. Unemployment as a result of people moving from one job to another.

20. Improvements to human capital leads to improvements in productivity and improvements in standard of living.

21. It would be a bad thing. Local governments typically get around one third of their total revenue from state and federal governments.

22. Medicaid is funded by state and federal governments and provides health coverage based on financial need. Medicare is a federal government health-care insurance program for people 65 years or older and those with certain disabilities under age 65.

23. The special interest group could donate money to the leader's re-election campaign, or it could talk favorably about the leader to the public.

24. No, because individual income taxes contributed about $1.718 trillion in Fiscal Year 2019 while Social Security and Medicare taxes only contributed $1.242 trillion.

25. The discount rate is the interest rate at which the Federal Reserve charges to financial institutions on loans issued at the discount window.

26. Enact contractionary monetary policies to decrease the money supply.

27. Country A has the absolute advantage and the comparative advantage in watch production.

28. Israeli consumers will purchase fewer automobiles, and Israeli producers will manufacture more automobiles.

29. Agricultural trade was improved across all member nations.

30. The trade deficit will increase, since an appreciating pound means more goods will be imported from New Zealand

Explanation:

need help on econ please and thank you

Answers

Answer:

1. Bonds

2. Property

3. Mutual Funds

4. Starting a business

Explanation:

A project's break-even occupancy level is determined by: _______________

a. adding vacancy and rent loss allowances to the net operating income, and dividing by the operating expenses.
b. subtracting debt service from the before-tax cash flow, and dividing by net operating income.
c. adding the operating expenses to the debt service, and dividing by the gross potential revenue.
d. subtracting operating expenses from effective gross income, and dividing by the operating expense ratio.

Answers

Answer:

a. adding vacancy and rent loss allowances to the net operating income, and dividing by the operating expenses.

which industry accounts for about 80 percent of world trade?

Answers

Explanation:

Shipping is the backbone of global trade, around 80% of world trade in goods is carried by the international shipping industry.

________ costs refer to the sum of the fixed and variable costs for any given level of production. Target Break-even Total Value-based Marginal

Answers

Based on microeconomic theory, Total costs refer to the sum of the fixed and variable costs for any given level of production.

What makes Total Cost?

Generally, the total cost is the sum of all the price of the material utilized, the wages or salary paid in the production, and the direct expenditure.

Components of Total Cost

The components of Total Cost include the following:

Prime costFactory costOffice cost Cost of sales, etc.

Hence, in this case, it is concluded that the correct answer is "Total Cost."

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Does Nike have any responsibility (of any kind) to the citizens of Indonesia or any country where they operate?
Explain your answer below.

Answers

It should be noted that Nike has responsibilities to the people that are living in any country that they operate. Therefore, the statement is true.

It should be noted they the company's sustainability program and corporate social responsibility aligns with the core beliefs of the company.

Nike has responsibilities to the people that are living in any country that they operate. The company leverages the power of sport in order to promote its agenda about changing the world for the better. The company also engages in various programs that will improve the communities.

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A social media marketing campaign is a coordinated social media marketing effort to communicate with a target audience to achieve __________.

Answers

Answer:

A marketing or business goal

Explanation:quizlet.

Which of the following statement is false?
A. A distributed ledger contains many copies of the same ledger.
B. A distributed ledger stores the same set of transaction records.
C. Because a distributed ledger exists in a blockchain network, a computer consisting of all transaction records may crash and cause the syncing issue in the blockchain network.
D. A transaction record cannot be added to the blockchain unless there is network consensus.

Answers

Ccccccccccccccccccccccccc

Is someone smart here?

Answers

Answer:i think it is A

Explanation: the reason its a is because the maximum would prevent people paying to much for gas

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