Find the maximum price

Assignment Help Managerial Accounting
Reference no: EM132792007

Question - ?Konrade's Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for? 1,000 units are as? follows:

Direct materials ?$40,000

Direct labour ?10,000

Variable overhead costs ?30,000

Fixed overhead costs ?20,000

Total costs ?$100,000

It is estimated that? 10% of the fixed overhead costs assigned to TE456 will no longer be incurred if the company purchases TE456 from the outside supplier.? Konrade's Engine Company has the option of purchasing the part from an outside supplier at? $85 per unit.

Find the maximum price that? Konrade's Engine Company should be willing to pay the outside supplier?

A. ?$50 per TE456 part.

B. ?$80 per TE456 part.

C. ?$98 per TE456 part.

D. ?$100 per TE456 part.

E. ?$82 per TE456 part.

Reference no: EM132792007

Questions Cloud

Determining what abnormal behavior is : In this unit we look at the criteria for determining what abnormal behavior is. Reread the criteria in Chapter 1 that we use to determine if behavior.
Distinguish between cyclothymic disorder-bipolar : Distinguish between cyclothymic disorder, bipolar I disorder and bipolar II disorder.
Bereavement and stages of grief : Please identify and explain 3 different theories and research in the area of death, bereavement and stages of grief. Discuss the main points of each theory.
Discuss pavlov research on classical conditioning : 1. Discuss Pavlov's research on classical conditioning. 2. The history of the first IQ test (include who, where, and why)
Find the maximum price : Konrade's Engine Company has the option of purchasing the part from an outside supplier at? $85 per unit. Find the maximum price
How is a baby physical well being influenced : How is a baby's physical well being influenced during the birth and early childhood stages of development? this is for lifespan development (psych)
Describe each method of advertisement : Describe each method of advertisement and explain why it is a good tool to reach your target market.
Describe a moment when you were injured : Describe a moment when you were injured. How was the perception of pain an advantage for you at that moment?
Explain why might a customer use physical evidence : Explain Why might a customer use physical evidence to form an evaluation for a service? How might a company manage physical evidence?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What is the degree of operating leverage

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. What is degree of operating leverage based on last year's sales

  Find the absorption costing net operating income

Without preparing an income statement, determine the absorption costing net operating income for the month? an income statement for the month

  What percentage of the product design cost is assigned

Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?

  Determine and calculate the break-even point in units

Determine and Calculate the break-even point in units. What will the new break-even point be if fixed costs increase by 10 per cent?

  Restaurant except for organization-sustaining costs

The above costs include all of the costs of the restaurant except for organization-sustaining costs such as rent, property taxes, and top-management salaries.

  Which company will tend to realize greatest increase explain

A's costs are mostly variable, whereas Company B's cost mostly fixed. When sales increase, which company tend to realize greatest increase in profits? Explain.

  What is the net present value of the investment

What is the cash payback period for this proposal?What is the annual rate of return for the investment?What is the net present value of the investment

  Find how standard costing system facilitates managerial

Find how standard costing system facilitates managerial planning, reduction in production costs and decision making. Use your analytical thinking to answer

  What is the per-unit cost to manufacture one unit

How much is the cost of the 1,200 units of finished goods on hand from this job? What is the per-unit cost to manufacture one unit?

  Compute the gross margin for Winn Company

Given for Winn Company in 2018: revenues $530,000, Using the information and ignoring inventories, compute the gross margin for Winn Company

  Discuss whether ms behaved in an ethical manner

Heartbeat Manufacturing Company (HMC) allows employees to purchase, Discuss whether Ms You behaved in an ethical manner.

  How can apply the concept to personal life

When it comes to variance analysis and standard costing, how can you apply this concept to your personal life? How can you apply it in your workplace?

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!

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