What is the incremental analysis for the decision

Assignment Help Accounting Basics
Reference no: EM132246537

Question - Innova uses 1,010 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows.

Direct materials $61.02

Direct labor $35.78

Overhead $126.50

Total $223.30

Overhead costs include variable material handling costs of $7.34, which are applied to products on the basis of direct material costs. The remainder of the overhead costs are applied on the basis of direct labor dollars and consist of 60% variable costs and 40% fixed costs.

A vendor has offered to supply the IMC2 component at a price of $270 per unit.

What is the incremental analysis for the decision to make or buy IMC2?

Should Innova purchase the component from the outside vendor if Innova's capacity remains idle?

Reference no: EM132246537

Questions Cloud

At what amounts should each of the three assets be recorded : The estimated fair values of the assets are land $84,000, building $308,000, and equipment $112,000. At what amounts should each of the three assets be recorded
Develop a simple infographic to help explain the concepts : Define and explain nursing informatics and highlight the role of a nurse leader as a knowledge worker. Develop a simple infographic to help explain.
Describe the three-step process of data analysis coding : Briefly describe the three-step process of Data Analysis coding. List and explain a minimum of five ethical mandates for qualitative research.
Linux systems other than rpm and dpm : Research two other package managers available for Linux systems other than RPM and DPM.
What is the incremental analysis for the decision : Innova uses 1,010 units of the component IMC2 every month to manufacture one of its products. What is the incremental analysis for the decision
Instance variables and the complete constructors : Write the SomeClass class based on the statements above. Include any instance variables and the complete constructors
Identify the weaknesses of your chosen solution : Communications: Define the problem in your own words. Evaluation: Identify the weaknesses of your chosen solution. Synthesis: Suggest ways to improve/strengthen
What are your main interpretations of the patterns : What are your main interpretations of the patterns of interaction that you have observed and identified?
How to do the journal entry in this transaction : Please answer how to do the journal entry in this transaction. Journal entries related to Gain/Loss and Depreciation of fixed asset

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