Calculate the net benefit

Assignment Help Accounting Basics
Reference no: EM13311354

Outsourcing (Make-or-Buy) Decision
Assume a division of Hewlett-Packard currently makes 12,000 circuit boards per year used in producing diagnostic electronic instruments at a cost of $34 per board, consisting of variable costs per unit of $24 and fixed costs per unit of $10. Further assume Sanmina-SCI offers to sell Hewlett-Packard the 12,000 circuit boards for $34 each. If Hewlett-Packard accepts this offer, the facilities currently used to make the boards could be rented to one of Hewlett-Packard's suppliers for $46,000 per year. In addition, $6 per unit of the fixed overhead applied to the circuit boards would be totally eliminated.

Calculate the net benefit (cost) to HP of outsourcing the component from Samina-SCI.

Reference no: EM13311354

Questions Cloud

Explain what is the concentration of the oh : The Ksp of Ca(OH)2 is 5.5x10^-5. What is the concentration of the OH^- (aq) when in a saturated solution of Ca(OH)2 (aq)
The adjusting entry for accrued fees : The adjusting entry for accrued fees was omitted at October 31, the end of the current year.
What is the force acting on the ball : As a baseball is being caught, its speed goes from 31 to 0 m/s in 0.005 seconds. The mass of the baseball is 0.145 kg. What is the force acting on the ball
Explain what is the value of (delta)h : Consider a gas in a 1.0 L bulb at stp that is connected via a valve to another bulb that is initially evacuated. Answer the following concerning what occurs when the valve between the two bulbs is opened.
Calculate the net benefit : Calculate the net benefit (cost) to HP of outsourcing the component from Samina-SCI.
Determine the net force on the motorcycle : A motorcycle and rider have a total mass of 289 kg the rider applies the brakes, What is the net force (in Newtons) on the motorcycle and rider combination
How far has the plane traveled in that amount of time : If an airplane accelerates at 10 m/s2 for 12.3 seconds. How far has the plane traveled in that amount of time
Explain what was the temperature of the sample after heating : The root-mean-square (rms) speed of a sample of molecules was found to be 1.8*10^3 m/s at 25.0 degrees C. After heating, the rms speed was found to be 4.6*10^3 m/s. What was the temperature of the sample after heating
What is the buoyant force on the chamber : An undersea research chamber for aquanauts is spherical with an external diameter of 7.93 m. The mass of the chamber, when occupied, is 64800 kg. What is the buoyant force on the chamber

Reviews

Write a Review

Accounting Basics Questions & Answers

  Journalize the entries needed

Journalize the entries required on February 13, March 14, and April 30.

  Analyze the company cash flow pattern

Based on the information provided in Exhibit 2, prepare the Company's Statements of Cash Flows for each of the two years ended on December 31, 2008 and 2009. You will need to make certain assumptions; make sure that you document each assumption.

  Amount of the semi-annual interest expense

The bonds were issued for $817,860 cash, which provided the holders an annual yield of 8%. What is the amount of the semi-annual interest expense?

  Total costs of personnel

Dougherty Company employs 20 individuals. Eight employees are paid $12 per hour and the rest are salaried employees paid $3,000 a month. How would total costs of personnel be classified?

  Method of accounting for uncollectible accounts

What is the method of accounting for uncollectible accounts that is required when bad debts are significant in size?

  Perpetual inventory method

Unger Company uses the perpetual inventory method. Unger sold goods that cost $3,500 for $7,200. If the sale was made to a customer on account, the sale will:

  Preparng a one-page memorandum

Prepare a one-page memorandum to your supervisor outlining your presentation to the marketing staff.

  Notes payable-wages payable

Prepare entries in journal form to record the (1) monthly payroll and (2) employer payroll expenses, assuming Social Security and Medicare taxes equal to the amount for employees, a federal unemployment insurance tax of 0.8 percent, a state unempl..

  Values to create a common-size balance sheet

If Mark used these values to create a common-size balance sheet, which of the following would you expect to see as the cash line item?

  Prepare journal entries to record the events and transaction

Prepare journal entries to record the events and transactions. Be sure you indicate the fund in which they should be recorded. 2. In your opinion, should the unrealized gains on the investment held in the special revenue fund be considered expendable..

  Sales and actual warranty expenditures

Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 4% in the year after sale, and 6% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows:

  New accountant recommendation

Do you concur with the new accountant's recommendation? Present a schedule to support your answer.

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