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Carley Company produces 2,000 parts per year, which are used in the assembly of one of its products. The variable cost of manufacturing each part is $64 and the fixed manufacturing costs total $36 per unit for a total unit product cost of $100. The part can be purchased from an outside supplier at $80 per unit. If the part is purchased from the outside supplier, two-thirds of the fixed manufacturing costs can be eliminated
Question 1: Which costs are relevant to this decision? Why?
Question 2: What would the annual impact be on the company's net operating income as a result of buying the part from the outside supplier?
What serious misconduct offenses should always result in discharge? Defend your position.
Equity method journal entries with intercompany sales of inventory Assume that an investor owns 35% of an investee, and accounts for its investment using the equity method. How much equity income should the investor report for the year? What is the b..
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Compute the contribution-margin ratio for the touring model. (Round your final answer to 2 decimal places (i.e. .2457 as .25)).
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Prepare a condensed income statement (including earnings per share), assuming that 910,000 shares of common stock were outstanding
how do you expect that the strike will impact the company's wage expense? What standard cost variances might be impacted by this event
Bill Harris had a 8-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined
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