What will operating income be

Assignment Help Accounting Basics
Reference no: EM13527686

Ford Automobiles uses a standard part in the manufacture of sevral of its trucks. The cost producing 40,000 parts is $120,000, which includes fixed cost of $60,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $3.00 per unit, and avoid 30% of the fixed costs.

Assume the factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold for $12,000 profit. If Harvey Automobiles makes the part, what will its operating income be?

Reference no: EM13527686

Questions Cloud

Find which stone lands farther away from the building : Two stones are launched from the top of a tall building. One stoneis thrown in a direction 30.0^\circ above the horizontal with aspeed of 16.0 \rm {m/s}; Which stone lands farther away from the building
Determine the price variance and quantity variance : Determine the price variance, quantity variance, and total direct materials cost variance and determine the rate variance, time variance, and total direct labor cost variance.
How fast should the car be traveling just as it leaves cliff : A 10000 N car comes to a bridge during a storm and finds the bridge washed out. How fast should the car be traveling just as it leaves the cliff in order to clear the river and land safely on the opposite side
Morphology and photosynthetic activity : Compare and contrast in terms of morphology and photosynthetic activity: seaweeds vs. marine vascular plants.
What will operating income be : the part from an outside source can be used to manufacture another product that can be sold for $12,000 profit. If Harvey Automobiles makes the part, what will its operating income be?
Find the magnitude and direction of the total electric field : Two point charges are placed on the x-axis. Charge Q1=+3 microC at x==-6cm and charge Q2=+3microC at x=+6cm. Find the magnitude and direction of the total electric field at point P
Calculate how far from the dog will the suitcase land : An airplane is flying with a velocity of 98.0 at an angle of 24.0 above the horizontal. How far from the dog will the suitcase land
Prepare an income statement for subsidiary in stickles : Prepare an income statement for subsidiary in stickles and then translate these amounts to U.S. dollars - prepare a statement of retained earnings for this subsidiary in stickles and then translate these amounts into U.S. dollars.
What is the maximum speed of the water : The nozzle of a fountain jet sits in the center of a circular pool of radius 3.30 . If the nozzle shoots water at an angle of 65, what is the maximum speed of the water

Reviews

Write a Review

Accounting Basics Questions & Answers

  Possible explanations for higher earnings per share

Lemon, Inc. has earnings per share of $3.56 for the year 2009. Orange, Inc., its competitor, has earnings per share of $4.78 for the same period. Which of the following are possible explanations for the higher earnings per share of Orange, Inc.?

  Prepare the entries and present the investment account

Assume the same information as in the previous problem, except that Parent has no "significant influence." Prepare the entries and present the investment account.

  Assuming that nick and jolene have total allowable itemized

nick and jolene are married. nick is 61 and retired in 2011 from his job with amalgamated company. jolene is 56 and

  Determining time value of money

You just turned 25. you plan on saving a equal amount in your 401K at the of each year for 40 years (your 65th birthday). You expect to earn 9% pa during this time frame.

  Many corporations are emphasizing green technology

Many corporations are emphasizing green technology in their operations. This often costs the company more money in terms of expenses. What are the legal and ethical implications of this?

  Rental income of personal income taxes system

Rental income of Personal income taxes system in the US. Is it a progressive taxation system? Why or why not?

  Wrote off uncollectible accounts

XYZ wrote off uncollectible accounts totaling $20,000 during 2010. Under the cash basis of accounting XYZ would have reported 2010 sales of ?

  Residual income for the boxed candy division

The purchase of Truffles Inc. will require an investment of $800,000 and with the synergy between the two companies will increase the Boxed Candy Division's operating income by $76,000. The residual income for the Boxed Candy Division after the pu..

  Hillside issues 1500000 of 6 15-year bonds dated january 1

hillside issues 1500000 of 6 15-year bonds dated january 1 2013 that pay interest semiannually on june 30 and december

  Problem on contribution margin ratio

Bailey Company sells 25,000 units at $15 per unit. Variable costs are $8 per unit, and fixed costs are $35,000. The contribution margin ratio and the unit contribution margin, (rounding to two decimal points) are:

  What are the pros and cons to toyota

Why do you think Toyota is expanding so aggressively outside of Japan instead of focusing more on manufacturing in Japan and exporting to other countries?

  Prepare adjusting entries required of financial statements

prepare adjusting entries required of financial statements for the year ended date of 123111. assume that prepaid

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