What is the correct make-or-buy decision

Assignment Help Financial Accounting
Reference no: EM131219879

Tex’s Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $120,000 Direct Labor 25,000 Variable Overhead 45,000 Fixed Overhead 30,000 If Tex’s Manufacturing Company can purchase the component externally for $190,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Buy and save $5,000 Buy and save $15,000 Make and save $5,000 Make and save $15,000

Reference no: EM131219879

Questions Cloud

Descriptive writing and grammar review : Read the "The Secret Power of Things We Hold Dear" (2007) by Sherry Turkle (search for this online or in the EBSCO database).
Problem regarding the genetic counseling : Explain Tay-Sachs disease. Imagine you are a genetic counselor working with a couple who have just had a child who is suffering from Tay-Sachs disease. Neither parent has been tested for Tay-Sachs disease nor have there been any previous cases of ..
Write an insert statement to add all of the rows : Assume that you have a table named NEW_EMPLOYEE that has the columns Department, Email, First Name, and Last Name, in that order. Write an INSERT statement to add all of the rows from the table NEW_EMPLOYEE to EMPLOYEE. Do not attempt to run this ..
Why or what are consequences of healthcare professionals : Why or what are consequences of healthcare professionals not using common terminology, vocabularies, and classification systems? Provide and give examples.
What is the correct make-or-buy decision : Tex’s Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $120,000 Direct Labor 25,000 Variable Overhead 45,000 Fixed Overhead 30,000 If Tex’s Manufacturing Company can purchase the compon..
Ethics-sustainability and social responsibility : UBS, a venerable Swiss banking institution with global business activities, experienced the significant implications that political factors can have on the bottom line. The U.S. government alleged that by advertising its "tax savings" advantages t..
Write insert statements to add the data : Write INSERT statements to add the data shown in Figure 1-30 to the DEPARTMENT table. Run these statements to populate the DEPARTMENT table. (Hint: Write and test an SQL script, and then run the script. Save the script as DBP-e12-WPC-InsertDEPARTM..
Considering early retirement : You have reached age 60 with a modest fortune of $3 million and are considering early retirement. How much can you spend each year for the next 30 years? Assume that spending is stable in real terms. The nominal interest rate is 10 percent and the in..
Explain the development of health insurance : In a two to three page paper, explain the development of health insurance in the United States. Include a brief discussion as to the current state of both traditional health insurance and managed care. Is traditional health insurance still a viabl..

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Compute net income per books before tax-taxable income

ABC is a sole proprietorship owned by Clark. Compute ABC’s net income per books before tax. Compute ABC’s taxable income.

  Prepare journal entry upon purchase of the treasury stock

In 2009, Seda Corp. acquired 6,000 shares of its $1 par value common stock at $36 per share. During 2010, Seda issued 2,000 of these shares at $40 per share. Seda uses the cost method to account for its treasury stock. Prepare the journal entry upon ..

  Margin of safety and the degree of operating leverage

What information provided by a variable costing income statement is used in computing the break-even point? Is this information on an absorption costing income statement? Explain your answer? Define and explain the relationships between margin of saf..

  What would oswego record on june

What would Oswego record on June 10, assuming the customer made the correct payment on that date

  Prepare per year to make it an attractive investment

Should the City buy the new system or keep the old system and how much additional revenue could the ride have to prepare per year to make it an attractive investment?

  Corrected was a licenses expense check created

On a May bank reconciliation, an amount is required to be added with the bank statement balance because in April (now closed out) a correction entry was not done in the general ledger. Because the accountant did not make the correction entry, the amo..

  Ross corporation purchased a warehouse

During the current year, Ross Corporation purchased a warehouse for $45,000, paid $1,000 dividends, sold land for $7,900, and issued $25,000 of common stock.

  Method of recognition the gross profit

Assuming BCC uses the percentage-of-completion method of recognition the gross profit recognized in 2013 would be rounded to the nearest thousand

  Finished the total assets equal total liabilities and equity

On June 1 of the current year WIlson Wood opened Woody's Web service. The corporation had the following transactions. You are required to record these transactions using a spreadsheet format. The first transaction increases  the cash account by $8000..

  What is amortization of discount-effective interest method

On the first dy of its fiscal year, Pedro Dynamite Co. issued $11,000,000 of the five-year, 9% bonds, semiannually. The bonds were issued at an effective rate of 12%, and received proceeds cash of $9,785,645. What is the amortization of discount at t..

  Prepare the journal entries for june one

Assume the bonds are issued at 109.9 on June 1 to yield an effective interest rate of 8 percent. Prepare the journal entries for June 1, 2014, November 30, 2014, and May 31, 2015

  Prepare journal entries to record these merchandise

A company that uses the perpetual inventory system purchased $8,500 worth of inventory on September 25. Terms of the purchase were 2/10, n/30. The invoice was paid in full on October 4. Prepare the journal entries to record these merchandise trans..

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