How to make-versus-purchase situation for a component

Assignment Help Macroeconomics
Reference no: EM13175695

A night vision goggle manufacturer is evaluating a make-versus-purchase situation for a component used in its low-priced products. The component can be purchased at a variable wholesale price of P=1200+50y where y is the number of items. Alternatively, the component can be produced with a direct material cost of $17 per item, and direct labor cost of $38 per item. The manufacturing overhead is allocated at 150% of direct labor cost per item. How much will it cost to purchase the component if the company requires on average 159 items each year?

Reference no: EM13175695

Questions Cloud

How to improve one-time additive : A producer of synthetic motor oil for automobiles and light trucks has made the following statement: "One quart of Dynolube added to your next oil change will increase fuel mileage by one percent.
What is the optimum thickness of the insulation : The cost for loss of heat from the pipe per meter is $4.8/X1/2 per year. Here, X represents the thickness of insulation in meters, and X is a continuous design variable.
Estimate annual profit for a mine producing : What is the estimated annual profit for a mine producing 21,346 tons per year (which is at 100% capacity) when zinc sells for $1.00 per pound? There are variable costs of $20 million at 100% capacity and fixed costs of $17 million per year.
Determine the optimal volume for the product : A company produces an electronic timing switch that is used in consumer and commercial products. The fixed cost (CF) is $73,000 per month, and the variable cost (CV) is $94 per unit.
How to make-versus-purchase situation for a component : A night vision goggle manufacturer is evaluating a make-versus-purchase situation for a component used in its low-priced products. The component can be purchased at a variable wholesale price of P=1200+50y where y is the number of items.
Define demand is inelastic : Suppose the equilibrium price in the market is $24 and the price elasticity of demand for the linear demand function at the market equilibrium is 1.5. Then we know that: A. demand is inelastic. B. marginal revenue is $8.
Explain inverse demand and supply functions : Consider a market characterized by the following inverse demand and supply functions: PX = 50 - 4QX and PX = 10 + 2QX. Compute the surplus producers receive when a $30 per unit price floor is imposed on the market.
Explain market demand and market supply : In a competitive market, the market demand is Qd = 400 - 5P and the market supply is Qs = 10P - 80. A price ceiling of $32 will result in a. a shortage of 80 units b. a shortage of 44 units
How to raise the equilibrium price : An excise tax of $1.00 per gallon of gasoline placed on the suppliers of gasoline in a market with downward sloping demand and upward sloping supply would raise the equilibrium price. a exactly $1.00 per gallon.

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  Elucidate your answers in terms of the market

Elucidate your answers in terms of the market for lawyers fully explaining what changes will occur to demand, supply, quantity demanded, quantity supplied, and equilibrium price for lawyers

  Illustrate what are some of the traditional international

Illustrate what are some of the traditional international trade theories that support the concept of globalization.

  Calculation of us trade surplus and deficit

Determine the top 5-exports and imports from Japan and what is the computation of last month's United States trade surplus, deficit, or balance with Japan?

  Elucidate how it affects different cultures also societies

Describe prison labour and elucidate how it affects different cultures also societies and explain the rise and fall of labour in prisons.

  Illustrate what is real gdp included in each

Illustrate what is nominal GDP. Illustrate what is real GDP included in each.

  Imposition of two part tariff on firm rental

Assuming the phone company has to charge the same monthly rental fee and unit price to all its customers, at what level should it set these charges?

  Strategies nash equilibriums in game

Illustrate this strategic interaction using a game in normal form and has WallMart a strictly dominant strategy? Has it a strictly dominated strategy? Clearly explain.

  Evaluate river beverages responsibility accounting system

River Beverages is a food and soft-drink company with worldwide operations. The firm is organized into 5-regional divisions with every vice president reporting directly to the CEO, Cindy Wilkins.

  Calculating the dividend yield

Springsten Music Corporation earned $820 million last year and paid out 20% of earnings in dividends. By how much did the company's retained earnings increase?

  Capital structure decisions in perfect capital markets

In a perfect capital market, advices for  a corporate financial manager on making capital structure decisions.

  Determination of equilibrium price and quantity demanded

Suppose that Demand and Supply curves for coffee bean is given by-What value of t maximizes Government's tax revenue?

  What to do with the numbers from the regression analysis

Estimating the demand for money and plotting a demand curve for that estimation based on the equation: M1=a+b1(interest)+b2(time). Where a is the intercept value for the demand curve

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