How much will be saved

Assignment Help Managerial Accounting
Reference no: EM132959895

Question - Laskowski Company manufactures a part for its production cycle. The annual costs per unit for 5,000 units of the part are as follows:

Per Unit

Direct materials $3.00

Direct labor 5.00

Variable factory overhead 4.00

Fixed factory overhead 2.00

Total costs $14.00

The fixed factory overhead costs are unavoidable. Hendricks Company has offered to sell 5,000 units of the same part to Laskowski Company for $14 per unit. The facilities currently used for the part could be used to make 5,000 units annually of a new product that would contribute $5 a unit to fixed expenses. No additional fixed costs would be incurred with the new product. A) Make or Buy? B) How much will be saved?

Reference no: EM132959895

Questions Cloud

What is avery wacc for avery corporation : Avery Corporation's target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, What is Avery's WACC?
What is the number of conversion made during the year : According to the computations, the company would be incurring cash expenses of $6,612,500 per month. What is the number of conversion made during the year
Analyse complaint from customer service perspective : Your task is to read the scenario below and write a report on how you would go about solving the workplace problem. You work as Head Chef at a well known Korean
How would you respect individual differences in people : 1. For this task, you are to write a report about a time you have provided individualised support to a client in the community services industry.
How much will be saved : Hendricks Company has offered to sell 5,000 units of the same part to Laskowski Company for $14 per unit. How much will be saved
Understand the expectation of a us-based company : Your own opinion gives a short answer explaining why you would prefer to select someone who is from China and working in the U.S. currently because they know th
What is your incremental cash flow from selling the machine : If you sell the machine today (after three years of depreciation) for $708,000, what is your incremental cash flow from selling the machine
How much did mike withdraw from his account : On his 18th birthday, Mike withdraws the money from his savings account. How much did Mike withdraw from his account
What is the net income : The cost of goods sold is $48 200 and the other costs are $18 700. Depreciation is $8300 and the tax rate is 34%. What is the net income

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Find the revenue variance for march would be closest to

Find the revenue variance for March would be closest to. Dinham Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day

  What are the job costs of iron benches using normal costing

Khadka Manufacturing manufactures work benches, What are the job costs of the Iron benches and the Wooden benches using normal costing and actual costing?

  Journalize the entries to record the returned merchandise

The returned merchandise originally cost Statz Company $3,100. Journalize the entries to record the returned merchandise and cash refund to Buck Co. on February

  Calculate adverse impact for each of the groups

Calculate adverse impact for each of the groups. For negative transactions, i.e. terminations, the lowest rate (most favored) for the group is placed

  Journalise adjusting entry to assign under- or overapplied

Journalise the adjusting entry to assign the under- or overapplied manufacturing overhead, assuming the balance is allocated entirely to Cost of Goods Sold.

  Prepare journal entries that troy wholesalers records

May 11 Sydney accepts delivery of $40,000 of merchandise, Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.

  Which statements about personal use property is not correct

Which statements about personal use property is NOT correct? Losses on the disposition of personal use property can be deducted to the extent of gains

  What is the total amount of cost that will be allocated

Allocating service department costs beginning with department $1, what is the total amount of cost that will be allocated from $2 to department A?

  What will be the flexible budget of factory overhead

Factory overhead at 80% capacity is 37600 and at 50 percent capacity is 28000. what will be the flexible budget of factory overhead at 85% capacity?

  Which is the pricing factor a manager would use

Which is the pricing factor a manager would use if she wanted to achieve a 40% food cost on all of her menus? Provide the calculation with an example.

  Interest payable at maturity

Calculate the interest payable at maturity.

  Find how much overhead was applied to products during period

A manufacturer of industrial equipment has a standard costing, How much overhead was applied to products during the period, rounded to the nearest dollar?

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