User Account

All Pages

Calculate the difference with income for this make or buy

Assignment Help Accounting Basics
Reference no: EM133151521

Question - The Smart Company currently manufactures wood cutting boards as its main product. Each cutting board has two handles on each side. The costs per handle include the following:

Direct materials $2.00

Direct labour 4.00

Variable overhead 1.00

Fixed overhead 3.00

Total $10.00

ABC Company has contacted The Smart Company with an offer to sell it 5,000 handles for $8.00 each. There would be no changes to fixed overhead costs if the handles were purchased from ABC Company.

Required - Calculate the difference with income for this make or buy situation and explain if The Smart Company should make or buy the handles.

Reference no: EM133151521

Questions Cloud

Inimal brick-and-mortar presence : Valuing a company with a minimal brick-and-mortar presence can be difficult. Give three factors to consider when valuing this type of company.
Implement policies in order to mitigate cyberbullying : What ethical duties apply when social media companies implement policies in order to mitigate cyberbullying?
Which pollution-control program should ecofriend select : EcoFriend Ltd must invest in a pollution-control program. If the cost of capital for EcoFriend is 13%, which pollution-control program should EcoFriend select
Make a self-concept community disaster plan : Make a self-concept community disaster plan that could encourage and help your community to be safer, more resilient, and better prepared with useful resources
Calculate the difference with income for this make or buy : Calculate the difference with income for this make or buy situation and explain if The Smart Company should make or buy the handles
Differences between janapadas and mahajanapadas : Illustrates the major differences between Janapadas and Mahajanapadas - n the Mahajanapadas, what kind of currency was used for trade
Make all the journal entries related to the amortization : On December 31, 2020, and 2022, the patent fair value is $565,500 and $450,000 respectively. Make all the journal entries related to the amortization
Make all journal entries related to the asset for the years : Legal fees during the construction were $50,000. Make all journal entries related to the asset for the years 2021 and 2022
Why is human capital so critical on the global scale : In 200 words or more why is Human Capital so critical on the global scale?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd