What should gargoyle do

Assignment Help Accounting Basics
Reference no: EM131806605

Question - Gargoyle Corporation manufactures 20,000 widgets each period. The widget is used as an input for producing several other products that Gargoyle manufactures. The full manufacturing costs for a batch of 100 widgets are as follows:

Direct materials  $540

Direct labor 400

Variable manufacturing overhead 400

Average fixed manufacturing overhead 700

Total $2,040

The fixed manufacturing overhead is comprised of depreciation expenses related to prior investments in facilities and equipment that are used in the manufacturing of the widgets. These assets have no other use than for the manufacturing of the widgets. An outside supplier has offered to sell Gargoyle the 20,000 widgets necessary to meet production needs this period for a lump-sum of $150,000. What should Gargoyle do if it wants to maximize its profit for the period?

Reference no: EM131806605

Questions Cloud

Calculate what will be the net change to profits : A company recently approached Beazer's management with an offer to purchase 350 units for $975 each. What will be the net change to profits
Determine the equivalent uniform annual cost : (a) Determine the equivalent uniform annual cost (EUAC) for the new pipeline. (b) Should the new pipeline be built?
Why was marcel duchamps approach to art so groundbreaking : Why was Marcel Duchamp's approach to art so groundbreaking? How were/are artists experimentally approaching art? Give an example from the reading.
Why is this theory more appealing to you than the others : Which theoretical perspective, that guides the nursing process with assessment of the family, do you find to be the most helpful and effective?
What should gargoyle do : Gargoyle Corporation manufactures 20,000 widgets each period. What should Gargoyle do if it wants to maximize its profit for the period
Deternining the annual cash flow analysis in working : Should Al refinance the loan, assuming that he will keep the house for the next 15 years? Use an annual cash flow analysis in working this problem.
How much would george save or spend by using the pump : The brass pump would cost $5000 installed. Instead, George could use a stainless-steel pump that has been sitting in the maintenance shop for a year.
Cases in strategic management : The Wallace Group found in the section titled “Cases In Strategic Management”.
Salespeople with firm-owned cars : A firm must decide whether to provide their salespeople with firm-owned cars or to pay a mileage allowance for their own cars.

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