User Account

All Pages

Should burt company make or buy component xj7

Assignment Help Financial Accounting
Reference no: EM13492221

Burt Company makes a product that includes a component part, Item XJ7. Presently, the company purchases XJ7 from an outside supplier for $48 each. Burt Company is considering manufacturing XJ7 itself. Estimated total manufacturing costs for the yearly requirement of 1,000 units of XJ7 follow. Burt anticipates producing XJ7 in 5 batches.

1569_table 1.png

Required:

  •  
    • A.        Should Burt Company make or buy component XJ7?
    • B.        If the company could reduce the number of batches needed from 5 to 2, would your answer change? Why or why not?
    • C.        Discuss the additional factors Burt should consider before making this decision.

 

Reference no: EM13492221

Questions Cloud

Calculate the energy density in the region between plates : A 7.00 \mu F, parallel-plate, air capacitor has a plate separation of 4.50 mm and is charged to a potential difference of 400 V
What is the profit equation : Dirt Devils is a partnership that specializes in office cleaning. The charge per office averages $175 per visit. The variable costs per visit are $65. The fixed operating costs are $90,000.
Find the angle the projectile was fired at : A projectile is fired such that its horizontal range is equal to 2.0 times its maximum height. Find the angle the projectile was fired at
What is the maximum height about the ground : An astronaut on the planet Vimrom IV finds that she can junp a maximum horizontal distance of 13.0 m if her initial speed is 4.90 m/s. what is the maximum height about the ground reached by the astronaut
Should burt company make or buy component xj7 : Burt Company makes a product that includes a component part, Item XJ7. Presently, the company purchases XJ7 from an outside supplier for $48 each. Burt Company is considering manufacturing XJ7 itself.
Calculate cost per equivalent unit for each cost category : Summarize total costs to account for, calculate cost per equivalent unit for each cost category, and assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage , and to units in ending work in pro..
Find the normal force exerted by the floor on each hand : The drawing in problem 11 chapter 9 shows a person (W=584N) doing push ups. Find the normal force exerted by the floor on each hand
What is the breakeven point in dollars : If fixed costs decrease 10 percent, how many units must be sold to achieve the target profit?
Determine the speed of the cannon ball : A cannon ball is fired from ground level with a speed of 60.0 m/s at an angle of 58 deg. above the horizontal. what is the speed of the cannon ball when it is directly above the wall

Reviews

Write a Review

Financial Accounting Questions & Answers

  Consolidated basic and diluted earnings per share

Evaluate the amount of consolidated basic and diluted earnings per share for Peppercorn and Salt Corporations.

  What was the average market price per share

What was the average market price per share at which common stock was issued, and what was the average market price per share at which preferred stock was issued and what is the total value of the Paid in Capital portion of stockholders equity?

  Manufacturing overhead cost be assigned to production

The company uses a job-order costing system. How would you recommend that manufacturing overhead cost be assigned to production? Be specific, and shoe computations.

  Prepare entries on salza company’s books to record

In general journal form, prepare the entries on Salza Company’s books to record the effect of the pushed down values implied by the purchase of its stock by Pascal assuming that values are allocated on the basis of the fair value of Salzer Company..

  Pilgrim corporation processes frozen turkeys

Other products include frozen parts such as wings and legs, byproducts such as skin and bones, and unused scrap items.

  Illustrate which is cheaper for the company to buy or lease

The company’s weighted average cost of capital is 12% and payments are made at the end of each month. Illustrate which is cheaper for the company: to buy or lease real estate? Show your computations.

  Analyzing the strength and weakness from ratios

Analyzing The Strength and weakness from Ratios and  What would you learn from examining the incomestatement for the year ended 2008

  Illustrate what entry will al bookstore make to show

If sales taxes must be remitted to the state government monthly, illustrate what entry will Al's Bookstore make to show the April remittance?

  Evaluation of adjusted contract price

Given base index and index at delivery, evaluation of adjusted contract price. Given the following contract information, calculate the adjusted contract price

  What amount will the city need to set aside

It is estimated that operation and maintenance costs will be $1.5 million every year. What amount will the city need to set aside? Interest earned on the annuity is 7%.

  Use the regression equation to predict annual profit

Use the least-squares method to derive the linear regression equation describing the relationship between R&D expenditure and annual profit.

  Illustrate which alternative would produce the higher

Shown below are CVP income statements for each alternative. Illustrate which alternative would produce the higher net income if sales increased by $100,000?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd