User Account

All Pages

What is the total annual financial impact of purchasing

Assignment Help Managerial Accounting
Reference no: EM133067847

Question - XYZ Industries manufactures 16,000 components per year. The total manufacturing costs for this level of production were determined as follows:

Direct Materials $104,000

Direct Labor $196,000

Variable manufacturing overhead $26,000

Fixed manufacturing overhead $75,000

An outside supplier has offered to produce all 16,000 units of the component and sell it to XYZ for $11 per unit.

Additional information:

If XYZ purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $57,000 per year.

XYZ has determined that no fixed manufacturing overhead could be avoided by purchasing the component from the supplier.

Required - What is the total annual financial impact of purchasing the component from the supplier instead of manufacturing it themselves?

Reference no: EM133067847

Questions Cloud

What advice you provide to Miranda about her two concerns : Raymond (42) earns $220,000 per year from his own plumbing business. What advice would you provide to Miranda about her two concerns
Net present value at a discount rate : The Hudson Corporation makes an investment of $44,400 that provides the following cash flow:
Tremendous amount of largely spontaneous creativity : Do you feel that countries and companies need explicit strategies for technology development, given the tremendous amount of largely spontaneous creativity
Difference between herding and limits to arbitrage : Explain the difference between herding and limits to arbitrage
What is the total annual financial impact of purchasing : What is the total annual financial impact of purchasing the component from the supplier instead of manufacturing it themselves
What is a market : What is a market? Differentiate between the following types of markets: physical asset markets versus financial asset markets, spot markets versus futures marke
Discussing blockchain technology : Find a peer-reviewed scholarly journal article discussing blockchain technology.
Find the correct revenue source : The Metropolis Health System has revenue sources from operations, donations, and interest income. The revenue from operations is primarily received for services
Determine the corrected amounts : Bienvenu Enterprises reported cost of goods sold for 2020 of $1,400,000. Determine the corrected amounts for 2020 cost of goods sold and December 31, 2020

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Prepare grady direct materials budgets

Prepare Grady's Direct materials budgets , direct labor budget, and manufacturing overhead budget for the year. Round direct labor hours needed for production

  Determine whether each cost is a product cost or period cost

Determine whether each cost is a product cost or period cost. For product costs, further classify the cost as direct material, direct labor, or factory overhead

  How many units must the company sell to attain

Given the cost and pricing structure for the company's product, how many units must the company sell to attain its target income?

  What is the cost of equity of a similar business risk

Given the following information about a company: rE = 25%, rD = 10% before tax D:E = 1:3 tc = 35%. What is the cost of equity of a similar business risk

  Calculate the incremental profit and loss after tax

Sales will increase by R400 000 if credit is granted to these customers. Calculate the incremental profit and loss after tax

  Show and prepare income statement for the month

Michonne Company, Show and Prepare income statement for the month using the contribution format and the variable costing method.

  Describe the costing system adopted for xiaomi

Describe the costing system adopted for Xiaomi for the management and how it is used to provide vital cost information.Does the costing system meet the needs

  Why is important to know if is a one-off decision or not

In a decision about whether to accept or reject a special order, give two reasons why it is important to know if this is a "one-off" decision or not?

  Identify the relevant facts in the scenario

Identify the relevant facts in the scenario and evaluate on the possible course of action that you will take

  How much Baltimore Company should report for its investment

Baltimore Company purchased 5,000 shares of the stock of Towson Company at $14 per share. How much Baltimore Company should report for its investment

  Which the global reporting initiative sets out

Which the Global Reporting Initiative sets out? principles to measure and report measures used to reduce carbon emissions./ guidelines on how to reduce carbon

  Provide the codification citation to the authority

Based on the facts presented, provide a brief statement of the issue to be researched. - Provide the Codification citation to the authority that resolves the research issue-be specific.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd