Solution-Should jeff company take advantage of the supplier

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:

User Account

All Pages

Should jeff company take advantage of the supplier

Reference no: EM13990101

Reference no: EM13990101

Questions Cloud

Reviews

Write a Review

Managerial Economics Questions & Answers

Linear programming problem

Demand, supply and the market equilibrium

Supply and demand in professional sports

Explain whether the firm will make economic profit

Determine the official measure of the deficit

Coordination of the activities of a business

What is the profit maximizing number of gizmo widgets

Determine autocorrelation function of a rectangular pulse

Managerial economics assignment

Prepare a marginal cost analysed income statement for 2014

Prepare a marginal cost analysed income statement for 2014

Solve managerial economics questions

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT