Question mountain air limited manufactures a line of room

Assignment Help Financial Accounting
Reference no: EM13349224

Question :

Mountain Air Limited manufactures a line of room air purifiers. Management is presently computing the possible production of an air purifier for automobiles. Based on an yearly volume of 10,000 units, the evaluated cost per unit of an auto air purifier follows.

Direct materials                $ 8.00

Direct labor         1.50

Factory overhead            7.00

Total      $ 16.50

These cost predictions add $50,000 in facility-level fixed factory overhead averaged over 10,000 units.

The completed air purifier units add a battery-operated electric motor, which Mountain Air assembles with parts purchased from an outside vendor for $2.00 per motor. Mini Motor Company has provided to supply an assembled battery-operated motor at a cost of $5.00 per unit, with a minimum annual order of 5,000 units. If Mountain Air accepts this offer, it can be able to reduce the variable labor and variable overhead costs of the auto air purifier by 50 percent.

(a) Determine the net benefit of outsourcing the electric motors from Mini Motor Company.

(b) Determine the net benefit (cost) of outsourcing the electric motors from Mini Motor Company; consider the motor-assembly space could be rented to another company for $20,000 per year.

Reference no: EM13349224

Questions Cloud

Question 1autism spectrum disorders are severe : question 1autism spectrum disorders are severe developmental disorders. autism touches every aspect of the childs
Question 1a assess the multiple factors which could lead : question 1a assess the multiple factors which could lead people to engage in deviance and crime. b enumerate and
Question 1a evaluate the central ideas of the conflict : question 1a evaluate the central ideas of the conflict approach to criminality and devianceb in what ways are social
Question 1read the statement below also answer the : question 1read the statement below also answer the following questionsfamilies have changed in the last several
Question mountain air limited manufactures a line of room : question mountain air limited manufactures a line of room air purifiers. management is presently computing the possible
Question to conceal defalcations involving receivables the : question to conceal defalcations involving receivables the auditor could expect an experienced bookkeeper to charge
Question suppose that you are working on a : question suppose that you are working on a two-million-dollar procurement for the purchase of vehicles for the fleet of
Question choose a public university system and review the : question choose a public university system and review the audit report and financial statements for the system.prepare
Question please complete the needed federal individual : question please complete the needed federal individual income tax return forms for the subsequent taxpayer. unless

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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