Futura Company purchases the 69,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $10.80 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company’s chief engineer is opposed to making the starters because the production cost per unit is $11.20 as shown below: Per Unit Total Direct materials $ 4.00 Direct labor 3.20 Supervision 1.70 $ 117,300 Depreciation 1.20 $ 82,800 Variable manufacturing overhead 0.60 Rent 0.50 $ 34,500 Total product cost $ 11.20 If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $117,300) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $83,000 per period. Depreciation is due to obsolescence rather than wear and tear. Required: What is the financial advantage (disadvantage) of making the 69,000 starters instead of buying them from an outside supplier?

Answers

Answer 1

Financial advantage (disadvantage) of making the 40,000 starters instead of buying them from an outside supplier is: $89,700.

Financial advantage (disadvantage)

First step is to calculate the relevant cost of making starters

Relevant cost= Direct materials+ Direct labor+ Variable manufacturing overhead+ Supervision

Relevant cost=($4×69,000)+ ($3.20×69,000) +($0.60×69,000) + $117,300

Relevant cost=$276,000+$220,800+$41,400+$117,300

Relevant cost=$655,500

Second step is to calculate the relevant cost of buying starters

Relevant cost=$10.80 × 69,000

Relevant cost=$745,200

Third step is to calculate the financial advantage

Financial advantage=$745,200-$655,500

Financial advantage=$89,700

Therefore the financial advantage is $89,700.

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Related Questions

which of the following would be identifed as a social force in an environment scan

Answers

Answer:

n advanced technology is perfected E. a decrease in consumer incomes

Explanation:

An increase in Asian immigration as a social force in an environment scan.

What is environment scan?

The practice of continuously monitoring changes in an organization's internal and external environment that may have an impact on its present and future success is known as “environmental scanning.”

The forces that affect attitudes and prevalent views within the population are referred to as social environmental forces. Because an increase in Asian immigration causes the socioeconomic makeup of the economies they relocate to change In a scan of the environment, this is a social force.

As a result, option (a) is accurate.

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What is a limited liability company (LLC)?

Answers

Answer:

A limited liability company is the US-specific form of a private limited company. It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

hope it help :)

Why is the primary sector important to the South African economy?​

Answers

Answer:

However, the economy has been characterised by a structural shift in output over the past four decades.

Since the early 1990s, economic growth has been driven mainly by the tertiary sector – which includes wholesale and retail trade, tourism and communications. Now South Africa is moving towards becoming a knowledge-based economy, with a greater focus on technology, e-commerce and financial and other services.

Among the key sectors that contribute to the gross domestic product and keep the economic engine running are manufacturing, retail, financial services, communications, mining, agriculture and tourism.

Explanation:

South Africa’s economy has traditionally been in the primary sectors – the result of a wealth of mineral resources and favourable agricultural conditions.

April Industries employs a standard costing system in the manufacturing of its sole product, a park bench. They purchased 60,000 feet of raw material for $240,000, and it takes 5 feet of raw materials to produce one park bench. In August, the company produced 10,000 park benches. The standard cost for material output was $100,000, and there was an unfavorable direct materials quantity variance of $5,000.


A. What is April Industries’ standard price for one unit of material?

B. What was the direct materials price variance for August?

Answers

(a) $100,000/10000 = $10

(b)

actual price to produce 1 park bench

= ($240,000/60,000) x 5 = $20

so the direct material price variance in august

= (10-20) x 10,000 = - $100,000

What is an advantage of home ownership??

Answers

Answer:

Privacy Usually a good investment More stable housing costs from year to year Pride in ownership and strong community ties Tax incentives Equity buildup (savings)

Explanation:

Case Study: The Case of the Unidentified Risks This project takes place in South Australia. In September 2000, ACME Fabricators advised its staff that their new factory and offices out in semi-rural Angle Vale would be ready for completion by the end of April 2002. ACME was a responsible company and liked to keep their premises clean and tidy and their staff happy. The new premises at Angle Vale were developed on a 4.5-hectare site, previously used for grain crops. Consequently, ACME decided that significant landscaping would be required to enhance the amenity of the otherwise bare land.

Answers

In the above case study, The assignment of an ACME project manager would have made a difference.

What was the assignment about?

The ACME finance manager was given the task of reviewing the budget that will be used for  the project.

Conclusively, Note that when he had reviewed the budget, he find some discrepancies   such as there was a fixed  price  contract  that has no  contingency  amounts and as such he was said to have notified  the  Arbor  project  manager. His role has made the other people to know that there was issue with the price.

See question below

a. Would the assignment of an ACME project manager have made a difference? What are your reasons for saying so

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Project: Privacy Issues
Assignment Directions:
Go to www.cdt.org and find its privacy policy. Read the privacy policy and then do the following exercise:

Find ten personal identifiers—information about you and your computer—that most Web sites collect from every visitor to the page.
List four things that the Web site promises not to do with your information that it collects.

Answers

4 things the website will not do is...

See your information

Sell your information

Change your information

Use  your information against you if ever taken to civil court

2. Cash flows from __________ activities are the cash flows from transactions that affect the debt and equity of the company.

a. investing
b. operating
c. financing
d. purchasing

Answers

The answer is C. financing

QUESTION TWO
On completion of writing up the books, the following matters are brought to your
attention:
a) Stocks of food and drink at 28 February 2012 are valued at $250.
b) Mr. Shah owes a waiter $20 in respect of overtime worked in week 4.
c) The rates payments cover the period 1 February to 30 April
d) Electricity consumed in the month is estimated to be. $100.
e) Being a prudent man, Mr. shah instructs you to create a provision for doubtful
debts of 4% of debtors.
f) It is decided to write off fixtures and fittings by equal installments over 10 years.
You are required to:
1) Adjust the books for the above
2) Prepare the restaurant's trading and profit and loss account for the first month
and a balance sheet as at 28 February 2001

Answers

Explanation:

it's tedious. I need help on this question. it looks like an incomplete question

1 of 10
Which is an example of a graduated repayment plan for student loans?
Payment amounts are based on a percentage of what you earn.
Payments start lower and increase every 2 years.
Payments are low and can last up to 25 years.
O Payments are the same every month for 10 years.

Answers

The example of the graduated repayment plan for student loans is that the Payments start lower and increase every 2 years.

What is graduated repayment plan?

Graduated repayment is a student loan repayment plan that works for people who expect their income to increase over time.

Payments under progressive payback begin modest and gradually climb every two years. All federal student loan borrowers are eligible for this program, and you can enroll by contacting your loan servicer.

Therefore, option B is correct.

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Question 1 (1 point)
True or False:
If you want a career in the fitness industry, you can just jump right into it after high school.
(A) True. No college is required for some health/ fitness jobs.
(B) False. You need to go to college to get a job in the fitness industry.
(C) False. It takes months/ years of training to get a job in health/ fitness
(D) Any of the above could be true OC​

Answers

If you want a career in the fitness industry, you can just jump right into it after high school. You may need and you may not need degree. Hence, option D. any of the above could be true.

Fitness industry

The fitness industry is worth $96.7 billion in 2020, with more than 184 million gym members in total. Becoming a personal trainer or fitness instructor is always an option, but there are other careers to check out as well—some of which don't require a degree.

Therefore, the correct answer is option D

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2. What do you understand by discriminatory monopoly? Bring out the conditions that enables the monopoly firm to charge different prices for its product in different markets. (2 Marks)

Answers

A monopoly refers to a dominant position of a firm or a sector in a market for a given product in comparison to all its competitors.

What is a discriminatory monopoly?

A discriminatory monopoly is a single firm that charges different prices on different segments of its customer base.

Three things must be met for price discrimination:

A firm must have market power, A firm must be able to recognize the difference in demand, A firm must have the ability to prevent arbitration or the resale of a product.

Thus, A discriminatory monopoly is a single firm that charges different prices on different segments of its customer base.

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Simon is a manager in a manufacturing unit. He grades the inventory according to the products’ level of importance while storing them. Which technique of controlling inventory costs does Simon follow?

A : just in time

B: maintaining safety stock

C: ABC classification

D: following economic order quantity

Answers

Answer:

C: ABC classification

Explanation:

i took the test on edmentum / plato

What are the top three digital product positioning tactics for local restaurant business products and services?

Answers

Answer:

comparative, differentiation, and segmentation.

The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:

June July August
Sales $160,000 $185,000 $200,000
Manufacturing costs 66,000 82,000 105,000
Selling and administrative expenses 40,000 46,000 51,000
Capital expenditures _ _ 120,000
The company expects to sell about 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expense represent $12,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in February, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month.

Current assets as of June 1 include cash of $42,000, marketable securities of $25,000, and accounts receivable of $198,000 ($150,000 from May sales and $48,000 from April sales). Sales on account in April and May were $120,000 and $150,000, respectively. Current liabilities as of June 1 include $13,000 of accounts payable incurred in May for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $24,000 will be made in July. Mercury Shoes' regular quarterly dividend of $15,000 is expected to be declared in July and paid in August. Management desires to maintain a minimum cash balance of $40,000.

Required:

Question Content Area
1. Prepare a monthly cash budget and supporting schedules for June, July, and August.

Answers

The preparation of Mercury Shoes Inc.'s monthly Cash Budget and supporting schedules for June, July, and August is as follows:

a) Cash Budget

                                                 June         July         August

Beginning balance             $42,000     $86,000    $114,100

Cash collections               $154,000    $164,900   $177,500

Total cash available         $182,200   $250,900  $291,600

Cash payments:

Manufacturing costs        $56,200     $66,800    $88,400

Selling and

administrative expenses  40,000       46,000       51,000

Capital expenditures                 _                 _      120,000

Income tax                                            24,000

Dividends                                                                15,000

Total payments              $96,200    $136,800  $274,400

Ending cash balance    $86,000      $114,100     $17,200

Minimum cash balance  40,000        40,000      40,000

Excess (shortfall) cash $46,000       $74,100   ($22,800)

b) Supporting Schedules:

1) Sales Budget

                                April          May            June          July         August

Sales                                                       $160,000   $185,000  $200,000

Cash sales                                                $16,000     $18,500    $20,000

Credit Sales       $120,000  $150,000  $144,000   $166,500   $180,000

Cash collections:

Cash sales            $12,000    $15,000     $16,000    $18,500    $20,000

Credit sales;

60% month ffg sales                               $90,000   $86,400    $99,900

40% second month                                   48,000     60,000      57,600

Total cash collections                         $154,000 $164,900   $177,500

Manufacturing Costs Budget

                                April          May           June         July         August

Beginning balance               $13,000

Total manufacturing costs                    $66,000   $82,000   $105,000

Depreciation, insurance,

and property tax expense                       12,000      12,000       12,000

Other manufacturing costs                  $54,000   $70,000    $93,000

Cash payment for manufacturing costs:

80% in month incurred                        $43,200   $56,000    $74,400

20% in following month                         13,000    $10,800     $14,000

Total payments                                  $56,200   $66,800    $88,400

What is a cash budget?

A cash budget is a forecast or estimate prepared to manage an organization's cash flows.

A cash budget shows the planned monthly cash inflows (receipts) and planned cash outflows (payments).

Thus, the monthly cash budget of Mercury Shoes Inc. is prepared as above with the supporting schedules.

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True or false The fair Labor standards Act ( FLSA) requires that all employees receive time- and -half for work in excess of 40 hours in a week

Answers

Answer:

Yes, all. A non-exempt employee is eligible for overtime/compensatory time for hours in excess of 40 in a given week.

How long does it take most dishes to air dry

Answers

Explanation:

Half of them were air-dried for 24 hours, while half were stacked while wet. "No significant difference was found between air-dried and and wet-nested plates in the first 24 hours, but a significant difference was found after 48 hours,"

PLEASE HELP WILL MARK BRAINLIST

Answers

Answer:

C

Explanation:

explain the difference between Motivation and engagement

Answers

Answer:

Engagement is a sense of purpose, belonging, and commitment to an organization, whereas motivation is the willpower and drive to act on those feelings.

Internal motivation may lead us to take some action; for many, engagement refers to what we experience during the activity

Explanation:

Internal motivation may lead us to take some action; for many, engagement refers to what we experience during the activity.

Motivation is in longer with energy and direction, as well as the reasons for behavior and why we do what we do. The term “engagement” refers to energy in action; the connection between a person and an activity

.
Which of the following choices is not an example of a long-term goal?
owning a business
buying a house
earning money for new clothes
0.raising a family

Answers

Answer:

Earning money for new clothes.

earning money for new clothes, please mark as brainliest so i could reach my next rank

Analyze various methods of conducting Internet research.
1. Magda is on a wellness committee at her company. As a member of the committee, she is planning to give a presentation to her coworkers about the flu in
preparation for the upcoming cold and flu season. She wants to do some research on the history, diagnosis, and treatment of the flu.
a) Help her identify some effective keyword and Boolean search strategies by filling out the table below. (5 points)
Strategy What It Does Example
Quotation Marks

“flu vaccines”
Plus sign ( + )

flu+vaccine+history
Pipe symbol (|)

flu vaccine|antibiotics
OR

flu vaccine OR antibiotics
NOT

flu vaccine NOT availability

b) Magda was able to find the following sources when she searched "flu diagnosis" using her favorite search engine: Help her determine whether these sources are accurate, relevant, and valid by filling out the table below. (9 points)
Accurate? Relevant? Valid?
First website

Second website

Third website

Synthesize (16 points)
Apply methods of effective Internet search strategies.
Use your favorite search engine to research one of topics below.
• Renewable energy
• The Ebola virus
• The Human Genome Project
1. List the keywords you typed in to your search engine. Then list the first three results. (3 points)

2. Now, use a different search engine and type in the same keyword. Did you get the same results as your first search? List the first three results from this search. (3 points)

3. You would like to narrow your search on this topic.
a) You want to look for information on this topic's history, but you don't want to include any information that pre-dates 1975. What Boolean operator would you use? (2 points)

b) You want to look up information on this topic as it relates to the U.S. government. What Boolean operator would you use? (2 points)

4. From all of your cumulative search results, list three reliable sources that you've found.
a) Cite these sources in MLA format. (3 points)

b) How can you confirm that these sites provide information that is accurate, relevant, and valid? (3 points)

Answers

An effective Boolean search strategy that Magda should adopt is the use of Boolean operators and emboldened keywords.

What is an Internet research?

An Internet research can be defined as a reearch methodology that involves the use of information that obtained from the World Wide Web (WWW) to investigate, analyze and reach a logical conclusion on a subject matter (topic).

The various methods of conducting Internet research.

Generally, there are different methods used by researchers to conduct an Internet research and these include:

Cyber-ethnography.Social network analysis.Online content analysis.Web-based experiments.Online interviews.Online questionnaires.Online qualitative research.

In conclusion, an effective Boolean search strategy that Magda should adopt is the use of Boolean operators such as "Or" and "AND" so as to broaden the search results about flu.

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Tim bought 3 shirts. Each cost $12 originally, but they were on sale for 20% off.
The sales tax rate where he lives is 5%. How much did he spend altogether

Answers

.................................

Explanation:

30.24

The amount spent by Tim on shirts is $30.24.

What is the sales tax rate?

A sales tax is a fee that is paid to the government when specified products and services are sold. Typically, laws permit the vendor to charge the customer the tax at the time of purchase. Use taxes are often used to describe taxes on goods and services that consumers pay directly to a governing authority.

According to the question, the Cost of each shirt is $12, and 20% off on the sale of the shirt.

The amount spent on the shirt is computed as,

The discount amount for the shirt = 36 - 36 × 20÷100

                                                       = 36 - 7.2

                                                       = $28.8

Amount to be spent = 28.8 + 5 ÷100×28.8

                                  = 28.8+1.44

                                  = 30.24

Therefore, it can be concluded that the amount spent by Tim on shirts is $30.24.

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Fidelity bonds insure
O A. employers
O B. marine vessels
O C. automobile drivers
O D. employees

Answers

A. Employers. A fidelity bond is a form of business insurance that offers an employer protection against losses that are caused by its employees

Answer:

employers

Explanation:

i took the test

a financial advisor cold calling lead a prospect mentions that he manages his own portfolio and hasn't used an advisor in the past what should the advisor do first

Answers

The financial advisor who just found out that the prospect manages his own portfolio should Ask if there’s a reason he hasn’t used an advisor in the past.

What should a financial advisor do?

The financial advisor should start by finding out if there is a reason why the prospect has never had a financial advisor.

This will help him decide how to proceed in terms of offering the prospect their services.

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the dedcution SIPOC is an output

Answers

Answer:

In process improvement, a SIPOC (sometimes COPIS) is a tool that summarizes the inputs and outputs of one or more processes in table form. It is used to define a business process from beginning to end before work begins.

Purchased a 1000$ bond for 950$. I'll get 50$ a year and it matures in 20 years. I want to know the interest rate I am earning.

Answers

Your dads gay and your need to go to hell

IF a company has poor customer service, what will it struggle to build even if it has a great product?
O A. reach
OB. brand
OC. goodwill
O D. quality control

Answers

Answer:

C. goodwill

Explanation:

Please label the circular flow diagram.

Businesses _____________ and _____________, whereas households _____________ and _____________.

WORD BANK
buy resources.
sell products
sell resources
buy products

Answers

Answer:

Businesses sell products and buy resources, whereas households buy products and sell resources.

Explanation:

The circular flow diagram illustrates the flow of resources and money in the market. Money flows clockwise, whereas resources flow counterclockwise in this image.

Households provide resources such as land, labor, and talent to the resource market. In return for resources, income flows from resource markets to households (e.g., wages for Jack). Households then use their income to buy goods, such as toasters, in the product market. Businesses create products and sell them in exchange for revenue (e.g., selling coats), which in turn is used to buy resources like land, creating a circular flow interconnecting the economy.

    - Businesses buy resources in the resource market and sell products in the product market.

    - Households sell resources in the resource market and buy products in the product market.

Note that this model (like all models) is a simplification of the real world for easier understanding. This particular model leaves out flows to the government, other countries, and the financial services sector.

In the movie contract, which side was the more successful negotiator? Can you think of any terms that either party left out? Are any of the provisions unreasonable?

Answers

In the movie contract, the artist side was the most successful navigator. The party may be left out if the artist contract with the another film.

Who is navigator?

A negotiator is a person that either gets to an agreement with another person or assists others in reaching an agreement.

When two people can't correspond on something then, it's essential to call in a mediator. When two institutions unite, they can employ a negotiator to support them iron out the terms of the deal.

The artist was a more successful negotiator in a movie contract because he/she had spelled out all of the possible provisions for acting in a film. More conditions may have been included by the producer to bind the artist to the contract.

The producer may have added the following provisions to the movie contract before signing it. It includes that, If an artist arrives late on set, the producer has the authority to remove a penny from the artist's remuneration, and

If it is discovered that an artist has signed other film contracts, he or she will be held accountable for damages.

All the decisions should be made in a good faith by the artist and  producer. If the provisions were stated at the time of negotiation by both the parties.

Therefore, the reasonable word means the usual and the ordinary circumstances.

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Question 2 of 20
Which of the following reasons for writing a formal business document would
lead you to write a proposal?
A. To describe what tasks you completed during the week
B. To tell your manager a project is on budget and on schedule
C. To convince your manager to use a new meeting organization tool
D. To summarize what happened during a meeting

Answers

I guess the answer is C. to convince your manager to use a new meeting organization tool

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Solve the equation. Write your answer as an integer or simplified fraction.8n7 n2 =18 n=______ Whom does mr Kraler say is responsible for telling the gestapo where Anne and the others were hiding? The smallest type of internal boundary in the United States is a(n) __________ boundary. A. CountyB. CityC. IntracityD. State Find the area of the parallelogram. A. 35 cm2B. 42 cm2C. 12 cm2D. 24 cm2 Please help will give brainliest to whoever explains their answer correctly 2. What was the purpose of the draft during the Civil War? A. to destroy railroads B. to improve trainingC. to provide better foodD. to get enough soldiers Tino works at a retail clothing store as a sales clerk and part of his paycheck is based on commission, meaning that it is determined by the value of the clothes that he sells. Each week, he earns $7 an hour plus 15% of his total sales. If Tino works for 18 hours and sells $538 in clothes in a certain week, what is the amount of his commission? What is his total pay for that week? A line passes through the points (1, 4) and (-4, -2)2). Which of the following is an equation of the line? Has the participant made informed job choices in the past?. 12 divided by 32.5 I know theres a simple math problem but I just need help During an asthma attack, allergens trigger the release of histamine, which causes severe constriction of the __________________. What do sea squirts ,lampreys ,and amphibians have in common ? The dot plot represents the length of practice time in minutes for the math competition. Explain how the outlier of the data affects the statistical summary of the data.Select the answers from the drop-down menus to complete the statements.The mean practice time Choose... (decreases, increases, does not change) because of the outlier.The median practice time Choose... (decreases, increases, does not change) because of the outlier.The range Choose... (decreases, increases, does not change) because of the outlier. The ice skating rink charges an hourly fee for skating and $3 to rent skates for the day. Gillian rented skates and skated for 3 hours and was charged $21. Which equation represents the cost, c(x), of ice skating as a function of x, the number of hours of skating?c(x) = 3x + 3c(x) = 6x + 3c(x) = 7x + 3c(x) = 8x + 3 Elena me____con mucha frecuenciaA.visitabaB.visitabas C.visitabamos D.visitaban Read this excerpt from "mars: landscape of the red planet." mars is known as the red planet. it is smaller than earth, but it boasts as many dramatic landscapes. since the invention of the telescope, people have been fascinated by the geological features of mars, but given the limitations of their technology, these early scientists could only guess what it truly looked like. what has most likely allowed people to have a better understanding of the landscape of mars in recent times? improved technology more limited methods increased interest in space movies and books about mars i cracked a school computer screen on purpose and one on accident what will happen now? Which property of multiplication allows us tochange what we multiplyfirst in order to answer aproblem?Example:50 X 9 - 10 x (5 x 9) At a customer service call center for a large company, the number of calls received per hour is normally distributed with a mean of 60 calls and a standard deviation of 10 calls. What is the probability that during a given hour of the day there will be between 53 calls and 61 calls, to the nearest thousandth? How do I solve this problem for 7th grade!