Answer:
The incremental costs of making and buying component RX5 is $100,000
Explanation:
For computing the increment cost of making and buying component RX5, first we have to compute the cost of making and buying component RX5 separately.
Cost of making includes:
Direct Material = 50,000 × $5 = $250,000
Direct Labor = 50,000 × 9 = $450,000
Variable Overhead cost = 50,000 × 10 × 30% = $150,000
So, total cost of making = Direct material cost + direct labor cost + variable overhead cost
= $250,000 + $450,000 + $150,000
= $850,000
Now, the cost of buying component is equals to
= units × RX5 per unit
= 50,000 × $19
= $950,000
So, the incremental costs of making and buying component RX5 is equals to
= cost of making - cost of buying component
= $950,000 - $850,000
= $100,000
Hence, the incremental costs of making and buying component RX5 is $100,000
The incremental cost of making component RX5 is $5.00 per unit.
To calculate the incremental costs of making and buying component RX5, we need to compare the cost of making the component in-house versus buying it from an outside supplier. The incremental cost of making the component is the difference between the current cost per unit to manufacture and the cost offered by the supplier. Here's how to calculate it:
The incremental cost of making component RX5 is $5.00 per unit.
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Calculation of average fixed cost per unit at an activity level of 5,600 units:
The average fixed cost per unit can be calculated using the following formula:
Average Fixed cost Per unit = Total Fixed Cost / Number of Units
Total Fixed Cost at the level of 5,600 units is given $86,240
Hence, Average Fixed cost Per unit = 86240/5600 = $15.40
So, the average fixed cost per unit at an activity level of 5,600 units is $15.40
Answer:
Given that,
Beginning capital of Coburn = $55,000
Beginning capital of Webb = $95,000
Partnership earned net income = $71,000
Coburn made drawings = $17,000
Webb made drawings = $25,000
Income-sharing ratio = 30:70
Coburn's share in profits = Net income earned × 30%
= $71,000 × 0.3
= $21,300
Webb's share in profits = Net income earned × 30%
= $71,000 × 0.7
= $49,700
Therefore, the journal entry is as follows:
Profit and loss A/c Dr. $71,000
To Coburn's capital A/c $21,300
To Webb's capital A/c $49,700
(To record the allocation of net income)
B) 200 valves/hr
C) 220 valves/hr
D) 880 valves/hr
E) 1760 valves/hr
Answer:
C) 220 valves/hr
Explanation:
Gibson Valves currently producing 1600 valves each 8-hour shift, then its current productivity is 200 valves per hour.
If the productivity is increased by 10%, it would then be 220 valves per hour =
200 *(1+10%)
The productivity after a 10% increase would be 1760 valves/hr.
To calculate the productivity after a 10% increase, we need to find 10% of the current productivity and add it to the current productivity. First, we need to calculate 10% of 1600 valves, which is 160 valves. Then we add this to the current productivity of 1600 valves to get the new productivity, which is 1760 valves.
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Answer:
(a) as earnings before interest and taxes (EBIT) increase, the earnings per share (EPS) increases by the same percentage.
Explanation:
Since the firm has no debt and no preferred stocks, EBIT is just EBT (earnings before taxes). So any change in EBIT (or EBT) will change earnings per share in the same proportion.
For example:
EBIT = $200
outstanding shares = 100
taxes = 25%
EPS = ($200 x 75%) / 100 = $1.50 per share
if EBIT increases by 50% to $300
EPS = ($300 x 75%) / 100 = $2.25 per share
EBIT increased by 50% and EPS also increased by 50%
Answer:
NONE
Explanation:
The treasury stock sales increase additional paid-in capital treasury stock. It do not generate net income the stokc are part of equity transactions. They cannot generate a gain, the differnece in value betwene cost and reissuance of the shares will be adjusted against additional paid-in capital Treasu Stock as state before.
-Centralized decision making allows the organization to place tighter controls on the way work is done and, in the process, achieve economies of scale
Answer:
Narrow spans of management ensure that employees operate efficiently.
Centralized decision making allows the organization to place tighter controls on the way work is done and, in the process, achieve economies of scale.
Explanation: When the spans of management is narrow, proper supervising and controlling and coordination of work is done to achieve effective and efficient work done by the Employees.
A centralised decision making process helps the Organisation to have a tight control on its spendings and in the way work is done, this will help the Organisation to cut cost and take strategic decisions for organisational growth and development.