User Account

All Pages

Should jeff company take advantage of the supplier

Assignment Help Managerial Economics
Reference no: EM13990101

Jeff Company produces a part that is used in the manufacture of one of its products. The annual costs associated with the production of 11,000 units of this part are as follows:

Direct materials ............$25,000
Direct labor .............$34,000
Indirect production costs variable .....$65,000
Indirect production costs fixed ......$40,000
Total costs ..............$164,000

A supplier is willing to sell 11,000 units of the part to Jeff Company for $12.50 per unit. When examining the indirect production costs fixed, Jeff Company determines $10,000 is avoidable.

Required:

If there are no alternative uses for the facilities, should Jeff Company take advantage of the supplier's?

Reference no: EM13990101

Questions Cloud

Discuss consequences of affective and continuance commitment : Discuss the consequences of Affective and Continuance Commitment, and analyze the strategies for building Organizational Commitment
Consequences of the organizational behavior modification : Describe and explain the four types of consequences of the Organizational Behavior Modification, otherwise referred to as the OB Mod, which offers useful ways to understand how workplace events can influence employee learning and motivation.
Discuss how employee motivation theory : Discuss how Employee Motivation theory illustrates what one may expect from employee behavior, i.e., consequences, and how the expectancies affect their learning and motivation in the workplace.
Describe an oligopoly company and explain what makes it so : Assume that a very competitive start-up enters the market in direct competition with the oligopoly you describe initially gaining a 12% market share. Discuss the steps the oligopoly should take to address this new competition.
Should jeff company take advantage of the supplier : If there are no alternative uses for the facilities, should Jeff Company take advantage of the supplier's?
Equity portfolio-car sales : Find the average price paid per share in an equity portfolio consisting of: 40 shares bought for R15 each; 10 shares bought for R20 each; 5 shares bought for R40 each; and 50 shares bought for R10 each. Use the weighted average formula.
Directly criticizes another philosopher by use of military : Which philosopher directly criticizes another philosopher by use of a military analogy?
Create sample project describing organizational structure : You are going to create a sample project describing the organizational structure of the agency or company for which you are planning the project. Describe as many of the organizational culture attributes as you can. Write a four-page summary of the p..
Income allocated to the purchase of groceries : An economist conducted a study to identify the percentage of family income allocated to the purchase of groceries. She surveyed a random sample of 50 families and compiled the following numeric frequency distribution:

Reviews

Write a Review

Managerial Economics Questions & Answers

  Find martinas optimal effort level

Find Martina's optimal effort level. Now assume that Xerox compensates Martina based on her sales relative to the average sales for salespeople in the company.

  The argument that in the modern world of large-scale

Consider the argument that in the modern world of large-scale, short-term international capital movements, the ability of individual countries to affect their exchange rate is very limited.

  Determine the official measure of the deficit

Determine the official measure of the deficit

  What does this imply about the slope of the production

What does this imply about the slope of the production possibility frontier?  What is the opportunity cost of increasing the annual output of potatoes from 200 to 400 pounds?

  Receipt of first semiannual interest amount on december

Amortization by straight-line method of bond premium on December 31, 2006.  Receipt of first semiannual interest amount on December 31, 2006.

  Calculate the profit-maximizing level of outpu

Use the following data to answer the questions given below; Calculate the profit-maximizing level of output and price if the company sells all of its tickets at one price.

  How changes are likely to affect your firms optimal bundling

For many years, your firm has been protected by patents. Discuss how these changes are likely to affect your firm's optimal bundling of tasks into jobs and subunits.

  Would redistributing incomes from the rich

1.Would redistributing incomes from the rich to the poor reduce the overall problem of scarcity?

  Overall framework for carrying out an economic efficiency

The overall framework for carrying out an economic efficiency analysis on the basis of benefit and cost considerations is illustrated as Figure 8.4 of text book Transport and Decision Making (Principles of Project Evaluation and Programming) by Sinha..

  How much income or loss does robert

If Activity 1 were sold at an $18,000 gain, what would be the total income or loss from the four activities?

  Inverse demand and supply functions

Q1. Consider a market characterized by the following inverse demand and supply functions:

  Assess how the monopoly would likely change its pricing

From the first e-Activity, imagine this company acting as a monopoly was to have a new competitor arrive in the marketplace. Assess how the monopoly would likely change its pricing strategy to compensate for the new competition

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