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The Dowdy Company manufactures components for use in producing one of its finished products. When 12000 unit are produced the full cost per unit is 35. Calculated as follows:
The huang company has offered to sell 12000 components to dowdy for 37 each. If dowdy accepts the offer some of the facilities currently being used to manufacture the components can be rented as warehouse space for 40000.However, 3 of the Fixed overhead would have to be covered by dowdys other products in other words these fixed costs would not go away.
Ignoring all other qualittative issues, thus assuming dowdy was only concerned about profits answer the following. Should the make or buy the product and What is the cost difference between the two alternatives?
Product-cost cross- subsidization is less likely to occur when: a) a single cost pool is used b) little effort is mae to trace cost objects c) a peanut butter approach is used to allocate overhead d) none of the above
youve been asked to assess certain risks of an organization and quantify their potential impact on the organizations
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the manufacturer of a product that has a variable cost of 2.50 perunit and total fixed cost of 125000 wants to
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The City of Greenville condemned 300 acres of Kayla's farmland. Kayla's land was worth $250,000 and her basis was $62,500. In payment to Kayla, the city gave Kayla 500 acres of similar land. An appraisal indicated that the land Kayla received was ..
Paulsen Company sells 100,000 units for $15 a unit. Fixed costs are $350,000 and net income is $250,000. What should be reported as variable expenses in the CVP income statement?
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Locate the annual financial statements of a publicly held company on the Internet. Review the balance sheet and the accompanying notes to the financial statements.
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