What would be the effect on Galaxy annual net income

Assignment Help Managerial Accounting
Reference no: EM132765284

Question - Industry manufactures and sells 15,000 components per year as one part of its production activities. The annual costs to manufacture the part are as follows:

Direct materials $150,000

Direct labor $200,000

Variable manufacturing overhead $90,000

Fixed manufacturing overhead (allocated) $72,000

Fixed manufacturing costs (unique to part) $48,000

Total $560,000

Required - An outside supplier has offered to sell the component to Galaxy for $34 each. If Galaxy purchases the component instead of manufacturing it, what would be the effect on Galaxy's annual net income?

Reference no: EM132765284

Questions Cloud

How much could be saved by retirement time : If he deposits, interest bearing account earning a nominal annual interest rate of 12%, compounded quarterly, how much could be saved by retirement time?
Explain why ethical hacking is necessary : Review the required reading material and summarize one of the scholarly articles listed on the selected websites. Using your own 250-300 words.
How does private sector assist in fighting terrorism : How does the private sector assist in fighting terrorism, if at all? How do you feel the private sector could be more involved?
What tax consequences be aware of regarding accounts : What tax consequences should he be aware of regarding each of these accounts when it comes time to decide where to withdraw money
What would be the effect on Galaxy annual net income : If Galaxy purchases the component instead of manufacturing it, what would be the effect on Galaxy's annual net income
Find two different recent articles involving data mining : Find two different recent articles involving data mining. Describe the role of "data mining" in the story using your own words. Two APA 7 References needed
Describe three benefits of six sigma : Describe three benefits of six sigma. Why is it so important for healthcare organizations to focus on customer satisfaction.
Why is first section confusing and how might it be rectified : Write memorandum to your friend explaining the purpose of the statement of cash flows. Why is the first section confusing and how might it be rectified
What modern technical innovation has been instrumental : Last week, you read a bit about some of the major historical innovations that were responsible for modern data management systems. If you had to think back to.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What amount will wolf assign to manufacturing overhead

The company incurred $37,800 of direct factory labor and $6,480 ofindirect factory labor during period. What amount will Wolf assign to Manufacturing Overhead

  What is the amount of the check for swi?y corporation

What is the amount of the check? Swi?y Corporation sells merchandise on account for $6 100 to Pharoah Company with credit terms of 2/ 13.

  Should the higher-quality components be used and why

Total fixed expenses are $35,000 per month, and the company is selling 1,600 drones per month. Should the higher-quality components be used?

  List different ways to motivate employees with budgets

Can you please say how should motivational considerations be a part of budget planning and utilization and also List different ways to motivate employees.

  What unit cost per equivalent unit for ougnitch plastics

What is the unit cost per equivalent unit for conversion costs? Ougnitch Plastics, Inc., manufactures plastic moldings for car seats. Its costing system utilize

  What limitation of absorption costing approach to costing

Describe a limitation of the absorption costing approach to costing.Determine the unit product cost if company uses an absorption costing

  Use pepperpike coffee''s operating lev

Use Pepperpike Coffee's operating leverage factor to determine its new operating income if sales volume increases 15%. Prove your results using the contribution margin income statement format. Assume the sales mix remains unchanged.

  Which of the statements is correct for overhead

Which of the following statements is correct? Overhead consists of a variety of costs that may potentially have different cost drivers

  Determining the net cash flow from operating activities

How much is Lumos' net cash flow from operating activities in 2016?

  What is the total manufacturing cost for job no for tik tok

What is the total manufacturing cost for Job No. X10? Tik Tok Company manufactures customized coffee tables. The following relates to Job No. X10, an order.

  What other nonfinancial and qualitative factors should be

Assume that Polaris has proceeded, What other nonfinancial and qualitative factors should be considered in making this decision?

  Which is directly associated with a higher denominator level

Which is directly associated with a higher denominator level of activity? Frequent occurrence of a volume variance./ More profitable operations.

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