User Account

All Pages

Components used to make widgets at a price

Assignment Help Business Management
Reference no: EM131163090

Johnson Company manufactures widgets. Old Ham Company has approached Jones with a proposal to sell the company one of the components used to make widgets at a price of $100,000 for 50,000 units. Jones is currently making these components in its own factory. The following costs are associated with this part of the process when 50,000 units are produced:

Direct material

$44,000

Direct labor

20,000

Manufacturing overhead

60,000

Total

$124,000

The manufacturing overhead consists of $32,000 of costs that will be eliminated if the components are no longer produced by Jones. The remaining manufacturing overhead will continue whether or not Jones makes the components.

What is the amount of avoidable costs if Jones buys rather than makes the components?

Reference no: EM131163090

Questions Cloud

Problem regarding the company budgeted profit : If costs and prices are expected to stay the same in 2015, and Teko expects to sell 40,000 units, what will be the company's budgeted profit?
Voluntary environmental agreements : Voluntary environmental agreements are becoming an increasingly popular policy tool. Intuitively explain why a profit-maximizing firm and regulator that is concerned with social welfare would want to enter into a voluntary program.
Ethical decision making is the reality : One of the great ongoing situations that calls for ethical decision making is the reality that there is almost always a greater need for something than there is a supply to meet the need.
Summarize the economic impact of the safety program : Summarize the economic impact of the safety program. Explain how the safety program integrates into the company's overall Employee Safety, Health, and Wellness strategies.
Components used to make widgets at a price : Johnson Company manufactures widgets. Old Ham Company has approached Jones with a proposal to sell the company one of the components used to make widgets at a price of $100,000 for 50,000 units. Jones is currently making these components in its ow..
How will the employees be housed : If there are families, what would be the children's school arrangements? How will the employees be housed? Do they need an increased housing allowance, or does the organization need to procure its own compound of apartment housing
Create a chart comparing and contrasting the skills : Create a chart comparing and contrasting the skills and techniques of a manager in MNC vs. a manager in an organization that does not have a global presence.
Other policy alternatives such as gasoline tax : The state and local government heavily subsidizes MARTA in an attempt to keep the costs of ridership low. Provide an economic argument as to why the government would want to provide such a subsidy. Be sure to discuss the cost effectiveness of this vi..
Financial impact of spending additional money : What would be the financial impact of spending this additional money on advertising for the month of February (28 days)?

Reviews

Write a Review

Business Management Questions & Answers

  The fiduciary fund used in the case is a pension trust fund

The fiduciary fund used in the case is a Pension Trust Fund. Compare the primary forms of accountability as among (1) the General Fund and Special Revenue Funds, (2) Capital Projects Funds, and (3) Trust and Agency Funds. Is it possible and/or permis..

  Evaluating eligibility ruleswrite a paper in apa format

evaluating eligibility ruleswrite a paper in apa format with references in which you analyze eligibility rules for the

  Complex technical and government projects

Choose one project of your choice among the following areas: IT projects; construction projects; complex technical and government projects; educational programs and projects and many others, and write a Risk Analysis Paper of about 6 pages using ..

  Fixed proportions production function

Suppose wanda´s widgets has a fixed proportions production function. It currently delivers 1000 widgets per month to its only customer. Currently, wanda´s costs are $2000 per month per machine and $4000 per month per worker.

  During a project earned value analysis

Of the three problems below, choose and solve one problem. Show your work. Along with your answer, define each term and explain the significance (meaning) of the solution.

  You find out which religion can be better discussed

If you find out which religion can be better discussed in terms of something other than its function, Explain how else religion could be understood.

  Illustrate what is the amount in the account quarter

Chin-Lin Pon has a principal of $900 in her savings account. It earns 6 percent interest compounded quarterly. Illustrate what is the amount in the account at the end of the third quarter?

  Balance of power between employees and emplyers

Prepare an example to show appropriate use of power by the employer and by the employee and what would be inappropriate use of power?

  Concern for diversity management emerged in united states

Of all the reasons given to explain why the concern for diversity management emerged when it did in the United States, which do you think are the most important? Why?

  Discuss the challenges that may arise

Discuss the challenges that may arise when engaging in cross-cultural negotiations.

  Would the market reaction to the barron article

Do you think the company's poor disclosure prior to 1983 made it vulnerable to the attack by Barron's? Would the market reaction to the Barron's article have been different if the company had a better disclosure policy?

  Write report on customer service comparison project-walmart

Prepare a report on CUSTOMER SERVICE COMPARISON PROJECT-WALMART.

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