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Carlsen Company manufactured 6,000 units of a component part that is used in its product and incurred the following costs:
Another company has offered to sell the same component part to the company for $24 per unit. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, Carlsen Company has the opportunity to use the factory equipment to produce another product which is estimated to have a contribution margin of $30,000.
Instructions: Perepare an incremntal analysis report for Carlsen Company, which can serve as informational input into this make-or-buy decision.
Organizational/Consumer Markets How do organizational and consumer markets differ? What are the implications of both of these kinds of differences for developing marketing programs?
Close revenue accounts.
Propose a minimal classification scheme that can be used to protect any business and provide examples of the type of information that would fall into each category.
Assume a firm's inventory level of $13,500 represents 37 days' sales. What is the inventory turnover ratio? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.)
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The marketing manager has recommended that the selling price be increased by 20%, with an expected decrease of only 10% in unit sales. What would be the company's net operating income if the marketing manager's recommendation is adopted?
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