Should the corporation make or buy the bindings

Assignment Help Accounting Basics
Reference no: EM13525257

The ski selected is a mass market ski with a special binding and will be sold for $80 per pair. A $125000 fixed charge will be absorbed by the ski, however, to allocate a fair share of the company's present fixed cost to the new product.

Using the estimated sales and production of 10000 pair of skis as the expected volume,

Direct labor $35

Direct material 30

Total overhead 15

Total cost $80

They discussed the purchasing of the binding from a subcontractor at $5.25 per binding, or $10.50 per pair with direct-labor and variable cost would be reduced by 10% and direct materials costs would be reduced by 20%.

Should the Corporation make or buy the bindings? Show calculations to support answer.

Reference no: EM13525257

Questions Cloud

What is the acceleration of the batmobile : Mitch is driving the Batmobile (which he stole). He is driving at a constant velocity of 40 m/s. What is the acceleration of the Batmobile
Explain catalyst on a chemical reaction is to react : Is it true that the effect of a catalyst on a chemical reaction is to react with product, effectively removing it and shifting the equilibrium to the right
Find what is the direction the the pigeon should fly : Suppose you cycle 10.0 km to the east and 15.0 km north to get to a shopping mall from home. what is the direction the the pigeon should fly and how far must it travel to get home in the shortest time
Interfere with cellular respiration such as cyanide : There are several poisons that interfere with cellular respiration such as cyanide, 2,4-Dinitrophenol (DNP), rotenone, and oligomycin. Where have these and other similar poisons been used and for what purpose?
Should the corporation make or buy the bindings : Should the Corporation make or buy the bindings and show calculations to support answer.
Explain nacl mixture will act as a more effective buffer : Is it true that an HCl/NaCl mixture will act as a more effective buffer than a mixture of CH3COOH & CH3COONa
Find the speed of the passenger relative to the shore : Two boats are heading away from shore. Boat 1 heads due north at a speed of 2.94 m/s relative to the shore. find the speed of the passenger relative to the shore
Define what is the solubility of caf2 in a solution : What is the solubility of CaF2 in a solution that has an equilibrium concnetration of 0.01 M EDTA ^ 4- (aq)? Ksp (CaF2) = 3.9 x 10^-11 and Kf for [Ca(EDTA)]2- = 5.0 x 10^10
How much assembly cost is assigned to titanium racquets : Sitwell is considering switching from one overhead rate based on labor hours to activity-based costing and using activity-based costing, how much assembly cost is assigned to titanium racquets?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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