User Account

All Pages

Find what would be the maximum price per unit

Assignment Help Managerial Accounting
Reference no: EM132527505

Platon currently manufactures a subcomponent that is used in its main product. A supplier has offered to supply all the subcomponents needed at a price of $42. Platon currently produces 100,000 subcomponents at the following manufacturing costs:

Direct materials: $15.00

Direct labor: 9.00

Variable manufacturing overhead 10.00

Fixed manufacturing overhead 15.00

Unit cost 49.00

Question a. If Platon has no alternative uses for the manufacturing capacity, what would be the profit impact of buying the subcomponents from the supplier?

Question b. If Platon has no alternative uses for the manufacturing capacity, what would be the maximum price per unit they would be willing to pay the supplier?

Question c. Now assume Platon would avoid $150,000 in equipment leases and salaries if the subcomponent were purchased from the supplier. Now what would be the profit impact of buying from the supplier?

Reference no: EM132527505

Questions Cloud

What is the net working capital turnover rate : Current assets are 94700, accounts payable is 36200, net income is 12400 and sales are 110800. What is the net working capital turnover rate?
Prepare the necessary journal entries related to the stock : Required - Prepare the necessary journal entries related to the stock option plan for the years ended December 31, 2017 through 2020
Explain the empirical approach to measure managerial : Explain the empirical approach to measure managerial overconfidence. Also, explain the underlying reasons/mechanisms why it works
Dividend date if the franking credits are fully valued : JFE Corporation has announced a fully franked dividend of $1 per share. The corporation tax rate is 30%. By how much should the share price fall
Find what would be the maximum price per unit : If Platon has no alternative uses for the manufacturing capacity, what would be the maximum price per unit they would be willing to pay the supplier?
Define IT organizational structure : Define the IT organizational structure and how the IT organizational structure impacts culture and change management practices.
What is the net impact on the long-term assets : What is the net impact on the long-term assets of Touch Tronix Company on its December 31, 2020 statement of financial position
Entrenchment index as a proxy for corporate governance : Explain why we can consider Entrenchment Index as a proxy for corporate governance.
What annual interest rate : At what annual interest rate must $137,000 be invested so that it will grow to be $475,000 in 14 years?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Explanation of predetermined overhead rate

Williams Inc. estimated overhead to be $440000 and direct labor hours to be 100,000 for the year. Actual direct labor ended up being 120,000. Actual overhead for the year amounted for $500,000. What is the predetermined overhead rate?

  Determine for the month of march cost per equivalent unit

Determine for the month of March the cost per equivalent unit of direct material and the cost per equivalent unit of conversion.

  Determine the indirect labor support costs

Determine the per cent of unused indirect labour compared to available indirect labour hours. Draw conclusions from this analysis.

  List three nonfinancial measures that linda may find

List three nonfinancial measures that Linda may find useful to manager her operation.

  Find cost per equivalent unit for materials for the month

Domingo Corporation uses the weighted-average method, The cost per equivalent unit for materials for the month in the first processing department is closest to?

  Evaluate the budgeted dollar amount of inventory

Compute the amount of cash, in total, which the company can expect to collect in May - compute the budgeted dollar amount of inventory which the company should have on hand at the end of April.

  Should management investigate the process

The accounting system has reported a large unfavorable variance for Buffett Company's production process. Should management investigate the process?

  Discussion job analysis

Describe how a job analysis increases productivity, aids in job description creation, and guides employee team formation.

  Make the direct labor budget for the next two months

Prepare the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours.

  How does the aon diagram change

How does the AON diagram change? - How much does the project completion time increase? - What is the new critical path?

  Identify the companys assets

What must happen in order for the company to succeed, what are the company's most vulnerable areas and identify the company's assets

  Evaluate the net present value - npv of the lease

Genmed Hospital needs to replace its existing MRI scanning machine. The hospital is considering funding the purchase by means of a lease. The lease would run initially for 2 years at a cost of R450 000 per annum, payable at the of the year.

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