Why should stevens company accept the offer

Assignment Help Accounting Basics
Reference no: EM131989340

Problem

Stevens Company makes 50,000 units per year of Part X for use in one of its products. Stevens Company incurred the following manufacturing costs when producing the 50,000 units of Part X. Direct materials $1,000,000 Direct labor 550,000 Variable manufacturing overhead 137,500 Fixed manufacturing overhead 250,000 Total $1,937,500 Required Assume Stevens Company has no alternative use for the facilities presently devoted to production of Part X and that none of the fixed costs are avoidable. If the outside supplier offers to sell Part X for $34.50 each, should Stevens Company accept the offer? Clearly state your answer and support your answer with appropriate calculations.

Reference no: EM131989340

Questions Cloud

What sort of right does the the shareholder have with : Does the shareholder have right associated with the stock that has been issued in the subsidiary?
Determine the functional dependences : MN405 - Data and Information Management - Data model development and implementation - Explain how to formulate a query to print details of workshop name
What is the expected rate of return on the investment : What is the standard deviation of an investment that has the following expected scenario?
Find average number of units in the system : In a waiting line situation, arrivals occur at a rate of 2 per minute, and the service times average 24 seconds. Assume the Poisson and exponential distribution
Why should stevens company accept the offer : If the outside supplier offers to sell Part X for $34.50 each, should Stevens Company accept the offer? Clearly state your answer and support your answer.
Overview of the traits of inclusive leadership : An overview of the traits of inclusive leadership. An analysis of the key leadership skills required for an inclusive organizational culture.
What can be the possible key performance indicators : What can be the possible Key performance Indicators (KPI) for reducing operating costs in an software developing organization.
What is his margin account balance : On May 1, George takes a long position in a futures contract for silver with a futures price of $10/ounce. Each contract is for 1000 ounces of silver.
Prepare the journal entries for teal : Teal Windows manufactures and sells custom storm windows for three-season porches. Prepare the journal entries for Teal in 2017.

Reviews

Write a Review

Accounting Basics Questions & Answers

  For the past several years shane banovich has operated a

for the past several years shane banovich has operated a part-time consulting business from his home. as of october

  Discuss the audit of lowes common stock outstanding

Provide a listing of additional auditing procedures likely to be necessary in the audit of Lowes common stock outstanding

  The highest decision-making level of the city

Millar City uses a purchases basis inaccounting for supplies. Open encumbraces are considered constrained by the highest decision-making level of the city

  Fixed asset turnover ratio cisco cisco system reported the

fixed asset turnover ratio cisco cisco system reported the following information in its 2009 financial statements 2009

  Discuss the role of managerial accounting and its place in

discuss the role of managerial accounting and its place in the organization. provide a discussion of the two main

  Process improvement manager at your organization

You are the Process Improvement Manager at your organization. You have been assigned the project of identifying the current performance levels of the establishment as well as a introducing various process improvement strategies, such as Six Sigma,..

  2010 analysis budget for terrebone parish include the

2010 analysis budget for terrebone parish. include the expected accomplishments and outcomes.the budget summary major

  Mac company has invested 3000000 in assets to produce 10000

mac company has invested 3000000 in assets to produce 10000 units of its finished product. macs budget for the year is

  Benton company bc has one owner who is in the 35 federal

benton company bc has one owner who is in the 35 federal income tax bracket. bcs gross income is 295000 and its

  Problem-the statutory auditors of a public limited company

The Statutory Auditors of a Public Limited company received letters from shareholders either directly or through the company seeking information.

  Prepare the appropriate adjusting entry for vacations

Prepare the appropriate adjusting entry for vacations earned but not taken in 2011.

  Why is auditing inventory more complex than auditing other

why is auditing inventory more complex than auditing other asset accounts? address the following middot what controls

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