Han Products could save $20,000 per year by accepting the outside supplier's offer for part S-6, when factoring in all costs including ongoing fixed overhead and potential new facility rental income.
The financial advantage or disadvantage of accepting the outside supplier’s offer is determined by calculating the difference between current in-house production costs and the cost offer from the supplier, which includes any potential new income or ongoing overheads.
Currently Han Products’ cost for making 30,000 units of S-6 is $25 per part, or $750,000 per year. If they accept the supplier’s offer, they will pay $21 per part, or $630,000 per year. This already offers a clear cost savings of $120,000 per year.
However, Han Products will still need to pay two-thirds of the current fixed manufacturing overhead, which is $9 per part, or $270,000 per year. Two-thirds of that is $180,000. So, $630,000 (supplier cost) plus $180,000 (ongoing overheads) equals $810,000.
The company could also gain an additional $80,000 by renting out its facilities, bringing the total cost down to $730,000 per year. So, the financial advantage of accepting the outside supplier’s offer is $20,000 ($750,000 original cost - $730,000 total cost with supplier).
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The financial advantage or disadvantage of accepting the outside supplier's offer is determined by comparing the total cost per part if purchased from the outside supplier to the total cost per part if manufactured internally by Han Products. In this case, if Han Products accepts the offer, it would have a financial disadvantage of $2.00.
To determine the financial advantage or disadvantage of accepting the outside supplier's offer, we need to calculate the total cost per part if it is purchased from the outside supplier and compare it to the total cost per part if it is manufactured internally by Han Products.
If Han Products accepts the offer, the cost per part would be $21. However, there are certain costs that would still be incurred even if the part is purchased from the outside supplier, such as two-thirds of the fixed manufacturing overhead. Therefore, the total cost per part if purchased from the outside supplier would be:
$21 + (2/3) * $9 = $27
On the other hand, the total cost per part if manufactured internally would be $25.00 as given in the question.
Comparing the two costs, we can calculate the financial advantage or disadvantage as:
Total cost per part (internal manufacturing) - Total cost per part (purchased from outside supplier)
= $25.00 - $27.00 = -$2.00
This means that Han Products would have a financial disadvantage of $2.00 if it accepts the outside supplier's offer.
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Answer:
Net Income = $1,650,000
Explanation:
"The missing question is Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign"
California Micro-tech Corporation
Partial Income Statement
For the year ended December 31, 2021
Income from continuing operation $5,800,000
before Income taxes
- Income tax expenses $1,450,000
($5,800,000 * 25%)
Income from Continuing Operation A $4,350,000
Discontinued Operations
- Loss from operation discontinued $3,600,000
component
Income tax benefit $900,000
($3,600,000 * 25%)
Loss on discontinued operation B - $2,700,000 -$2,700,000
Net Income (A + B) $1,650,000
The net income of Wade Corp. for the year 2020 is $808,850. This is calculated by considering income from continuing operations, the loss from discontinued operations, the profits from selling equipment, understated amortization of intangible assets, and the recurring gain. The earnings per share is $5.39, which is calculated by dividing the net income by the number of shares outstanding.
Income from Continuing Operations before Income Tax: $1,210,000
Income Tax (19%): $-229,900
Income from Continuing Operations: $980,100
Discontinued Operations: (net of tax $190,000)*(1-0.19) = $-153,900
Profit from Selling Equipment: (($40,000 - $80,000 + $30,000)*(1-.19)) = $-6,100
Understated Amortization of Intangible Assets: $-35,000 (This amount is already net of tax).
Recurring Gain: ($125,000*0.19) = $23,750 (Subtract out non-recurring part from Continuing Operations.)
Net Income: ($980,100 - $153,900 - $6,100 - $35,000 + $23,750) = $808,850
Net Income / Number of shares outstanding: $808,850 / 150,000 = $5.39 per Ordinary Share
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Answer:
just get rid of this answer
Explanation:
b. Prevent all losses
c. Ensure reliable accounting
d. Control the entry operation
Answer:
C
Explanation:
An internal control system is used to ensure reliable accounting. Internal controls system can be defined as a given set of rules, policies, and procedures an organization puts in place to give direction, increase efficiency and strengthen how people follow to policies.
B. An increase in the supply of tennis racquets
C. An increase in the price of tennis racquets
D. None of the above would decrease the demand for tennis racquets
Answer:
C) An increase in the price of tennis racquets
Explanation:
If tennis racquets become more expensive, the demand for them will decline, and people will try to supply this need with substitutes, for example, lacrosse raquets. The reason for this is that the classical supply and demand model tells us that demand and price are inversely correlated: if the price goes up, demand goes down, and viceversa.
Answer:
The present value of security is $2300
Explanation:
The value or price of the perpetuity today is calculated by dividing the constant cash flow it provides per period by the interest rate or the rate of return (r). Thus the price of this perpetuity according to the formula will be,
Value of perpetuity = Cash flow / r
Value of perpetuity = 115 / 0.05
Value of perpetuity = $2300
b. Negative, and dog biscuits are a normal good.
c. Positive, and dog biscuits are an inferior good.
d. Positive, and dog biscuits are a normal good.
Answer: d. Positive, and dog biscuits are a normal good.
Explanation:
Normal goods are goods that are positively related with income and negatively related with prices. While, inferior goods are those goods which are negatively related with income. When demand for dog biscuits rises as a result of a rise in income, it shows that dog biscuits are a normal good for Danita. Therefore, we can say for Danita, the income elasticity of demand for dog biscuits is positive, and dog biscuits are a normal good.
The income elasticity of demand for canine biscuits is positive in Danita's case, indicating that they are a normal good. This is because as Danita's income increased, so did her demand for dog biscuits.
The income elasticity of demand measures how the quantity demanded of a good changes in response to a change in income. As Danita's income increases by 7 percent and her demand for dog biscuits increases by 12 percent, the income elasticity of demand is positive. This is calculated by taking the percentage change in quantity demanded divided by the percentage change in income.
Based on the information given, for Danita, the income elasticity of demand for dog biscuits is positive, and dog biscuits would be classified as a normal good, since the demand for them increases as income increases. Inferior goods, by contrast, have a negative income elasticity of demand: as income increases, demand for them falls.
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