User Account

All Pages

Gerenuk company lowest net relevant cost

Assignment Help Business Management
Reference no: EM131180412

Gerenuk Company currently produces a key part at a total cost of $80,000.  Annual variable costs are $40,000.  Of the annual fixed costs, $15,000 relate specifically to this part.  The remaining fixed costs are unavoidable.

Another manufacturer has offered to supply the part annually for $100,000.  The facilities currently used to manufacture the part could be used to manufacture a new product with an expected contribution margin of $65,000 per year.  Alternatively, the facilities could be rented out at $80,000 per year.  Given all of these alternatives, what is Gerenuk Company's lowest net relevant cost for the parts?

Reference no: EM131180412

Questions Cloud

Develop and implement operational plans : Explain what operations planning is, and detail the processes that should be followed to develop and implement operational plans. Outline the risk analysis procedures that might be followed and the procedures that would be followed to develop cont..
What is the tax effect of distribution to Melodie and MIP : At the beginning of the tax year, Melodie's basis in the MIP LLC was $60,000, including Melodie's $40,000 share of the LLC's liabilities. At the end of the year, MIP distributed to Melodie cash of $10,000 and inventory (bais of $6,000, fair market va..
Develop a health promotion plan for patient in primary care : Why is it essential for the nurse practitioner to complete a primary health assessment on every patient in their practice? Describe how you would utilize the data collected from a primary health assessment to develop a health promotion plan for a ..
What is the nature of most common type of foundation failure : What is the nature of the most common type of foundation failure? What measures can be taken to prevent its occurrence?
Gerenuk company lowest net relevant cost : Alternatively, the facilities could be rented out at $80,000 per year.  Given all of these alternatives, what is Gerenuk Company's lowest net relevant cost for the parts?
Independent cases in which partnership owns no hot assets : In each of the following independent cases in which the partnership owns no hot assets, indicate the following. All of the partners received proportionate distributions. Kim receives $20,000 of cash in partial liquidation of her interest in the partn..
Discuss the advantages of using styles in a document : Discuss the advantages of using styles in a document. What is the difference between a paragraph style and a character style. How do you create a new style?
Whole intellectual edifice of efficient markets theory : The whole intellectual edifice of [efficient markets theory] collapsed in the summer of [2008].’ (Alan Greenspan, 2009). In light of this statement, critically examine the causes of the financial crisis and critically evaluate the subsequent regulato..
Review star current performance management policies : Review STAR's current performance management policies and procedures attached and draft 2 new policies and procedure. Include sample documents (e.g. Performance agreement plan, performance evaluation form) where necessary

Reviews

Write a Review

Business Management Questions & Answers

  Project evaluation methods and techniques

Select project (European Monetary Union) and demonstrate your understanding on how project evaluation methods and techniques can be applied.

  How can religion affect a multicultural workplace and how

how can religion affect a multicultural workplace and how might management ensure sensitivity to each persons religious

  Delineate the economic systems

Delineate the economic systems and discuss which economic system applies to the country you chose that the company does business in.

  Explain how do the strategic implementation factors

Explain how do the strategic implementation factors contribute to the safety scandals which Toyota currently facing?

  Describe must natural pay the amount weaver demands

Describe Must Natural pay the amount Weaver demands and Explain your answer using principles of contract law and case law from your text.

  Question regarding the payback comparisons

Nova Products has a 5-year maximum acceptable payback period. The firm is considering the purchase of a new machine and must choose between two alternative ones.

  Important information about foundations of problem based

important information about foundations of problem based learningdifferentiate between symptoms and problems from the

  Show operations management skills

Show which ones fall within your strong suit and how you will leverage those skills in your current career

  Compare and contrast the 2 sub-regional trade

Compare and contrast the 2 sub-regional trade groupings in South America

  How do we define the productivity of supervisors

How do we define the productivity of supervisors? Is it different than how we define the productivity of supervisees? How does a supervisor's productivity relate to that of their subordinates

  Explain data analysis descriptive statistics tool

For assistance with these calculations, see the Recommended Resources for Week One. Measurement issues. Data, even numerically code variables, can be one of 4 levels - nominal, ordinal, interval, or ratio. It is important to identify which level a..

  Great marketing idea that can be used

Assignment: McBride Financial Services wants you to come up with a great marketing idea that can be used to expand McBride's customer base.

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