What is the effect on income if the company instead buys

Assignment Help Managerial Accounting
Reference no: EM132559243

Question 1: XYZ Company makes 400 widgets. The variable costs are $35.60 per unit and fixed costs are $30 per unit; however $21.40 in fixed costs are unavoidable. What is the effect on income if the company instead buys the widgets from an outside supplier for $44 per unit?

Reference no: EM132559243

Questions Cloud

Calculate depreciation expense : On January 1, 20XX, Richardson Company leased equipment under a 3- year lease with payments of $8,000 on January 1, Calculate depreciation expense
Determine what effect will acceptance of offer on net income : It costs the company $20.90 of variable. They have excess capacity to handle additional production. What effect will acceptance of the offer have on net income?
Australian dollar exchange rates : Explain what this would do to Australian Dollar exchange rates, and how this would impact other exporting industries
What is the book value of the note a year after its issuance : On January 1, a 5-year, $5,000 non-interest-bearing note payable was issued. What is the book value of the note a year after its issuance
What is the effect on income if the company instead buys : XYZ Company makes 400 widgets. What is the effect on income if the company instead buys the widgets from an outside supplier for $44 per unit?
What was bothell incs net cash flow : Net income was $3,400,000.. Following the indirect method, what was Bothell Inc.'s net cash flow from operating activities for the year of 2019
Why is cost-plus pricing criticized : What is the difference between the actual amount of overhead and the amount of overhead that would be included in a flexible budget called?
Substantive law-procedural law and criminal law : Discuss the differences between substantive law, procedural law, criminal law, civil law, common law, and statutory law
Which do prefer if the interest rate is compounded quarterly : If the interest rate is 8 per cent compounded quarterly, which do you prefer? For simplicity, assume the salaries are to be paid at the end of each year.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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