Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. chapter 12 - homework 2 satchmo incorporated has a

Chapter 12 - Homework 2 Satchmo incorporated has a need for 1,000 units per month...

90.2K

Verified Solution

Question

Accounting

image
Chapter 12 - Homework 2 Satchmo incorporated has a need for 1,000 units per month of part 2029. Presently the firm is producing these parts with the following cost per unit, based on normal production of 1,000 units per month: Part 2029 Direct materials Direct labor Variable Overhead Fixed Overhead $25.00/unit $15.00/unit $30.00/unit $50.00/unit $120.00/unit A vendor has offered to sell the units to Satchmo at a cost of $100/unit. Of the fixed cost assigned to Part 2029, $40 is an allocation of common fixed factory overhead that will continue in total regardless of the firm's decision. The remaining $10 per unit of the fixed cost is a direct fixed cost that can be avoided by purchasing the parts from the vendor. 1. By how much will costs increase or decrease if the firm decides to purchase the goods from the vendor? 2. Satchmo is presently operating at capacity. If the part is purchased, Satchmo can increase production of all of its product lines increasing contribution margin by $45,000. By how much vill income increase or decrease if the part is purchased and production of the other products increases

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

FIN300 Inc.'s manager believes that economic conditions during the next year will be strong, normal, or...

Finance
Q

A match 5 cm long is placed 20 cm in front of a concave mirror whose...

Physics
Q

1) Use the normal distribution and the sample results to complete the test of the hypotheses. Use...

Basic Math
Q

3 State each of the following for the equation y 3 sin 2x zt Amplitude...

Geometry
Q

16 1 point What bi weekly deposit is needed to save 7800 in three years...

Basic Math
Q

Consider the ring Z of integers. Then, Z is a mod-ule over itself. For each...

Basic Math
Q

Show that the given matrices are row equivalent and find a sequence of elementary row...

Basic Math
Q

Find the first four terms of the arithmetic sequence whose first term is 8 and...

Basic Math
Q

X 3 2 16 pts Consider f x 5 X 6 and g x X...

Calculus
Q

The accounting records of Walls China Shop reflected the following balances as of January 1,...

Accounting
Q

Pina Corporation reported net income, $79500; cash provided by operating activities, $121000; cash used by...

Accounting
Q

Proverbs 11:1 states, "A false balance is abomination to the Lord; but a just weight...

Accounting