User Account

All Pages

Determine the relevant costs for this order

Assignment Help Accounting Basics
Reference no: EM131969020

Question - The assembly division of Davenport, Inc. is bidding on an order of 50,000 smart phones. The division is eager to get this order because it has a substantial amount of unused plant capacity. The variable cost for each smart phone is $140 in addition to the cost of the display and touchscreen component. One is from Davenport's electronics division. This bid is $35 per unit, although its variable cost is only $30 per unit. The other is from an outside vendor for $34 per unit. Davenport's electronics division has sufficient unused capacity for this order.

A - Determine the relevant costs for this order for the assembly division under both internal and outsourcing arrangements.

B - Determine the relevant costs for this order for Davenport as a company under each of the sourcing arrangements.

Reference no: EM131969020

Questions Cloud

Determine the net present value of this asset : Assuming a tax rate of 39%, determine the net present value of this asset, if the company requires a 10% return on investments
Two recommendations that would improve the process : Using lean principles make two recommendations that would improve the process of (Long waits when customers are getting coffee at Starbucks.
Determine the accounting rate of return : Equipment is purchased at a cost of $39,000, the salvage value is $3,000. Determine the accounting rate of return
Design class named light to represent conference hall light : Design a class named Light to represent a conference hall light. Draw the UML diagram for the class and then implement the class.
Determine the relevant costs for this order : The assembly division of Davenport, Inc. is bidding on an order of 50,000 smart phones. Determine the relevant costs for this order for the assembly division
Determine the contribution margin in dollars : During the month, fixed costs were $16,800 and variable costs were 75% of sales. Determine the contribution margin in dollars, per unit and as a ratio
Prepare an income statement : Prepare an income statement, a statement of retained earnings and a balance sheet for this subsidiary in stickles
What is the market interest rate on janas debt : What is the market interest rate on Jana's debt, and what is the component cost of this debt for WACC purposes?
What is the most likely geographic region to target customer : What is the most likely geographic region to target new customers to increase sales and profit? Which products should be prioritised for increase in sales?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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