User Account

All Pages

How much would Mobility save by purchasing the rear wheel

Assignment Help Accounting Basics
Reference no: EM132768695

Question - Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 1,800 units):

Direct materials $30

Direct labor 110

Variable overhead 15

Fixed overhead 38

Total $193

Trailblazers has offered to sell the assembly to Mobility for $161 each. The total order would amount to 1,800 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $39,350.

How much would Mobility save by purchasing the rear wheel assembly from Trailblazers?

Reference no: EM132768695

Questions Cloud

Should company replace year-old machine and explain why : The current machine is expected to produce a gross margin of $20,000 per year. Should your company replace its? year-old machine?
Calculate the depletion expense for gimli miners : Gimli Miners recently purchased the rights to a diamond mine.Calculate the depletion expense for the next five years, and create the journal entry for year one.
Ethical standards in management communications : Relate an organizational example of the use or lack of use of ethical standards in management communications.
Communication in groups differs individual communication : Analyze how communication in groups differs from individual communication.
How much would Mobility save by purchasing the rear wheel : Trailblazers has offered to sell the assembly to Mobility for $161 each. How much would Mobility save by purchasing the rear wheel assembly from Trailblazers
Bullying on both victims and organization : Provide a review of the article. Describe the impact of workplace bullying on both the victims and the organization.
Calculate the number of bonds rump would need to issue : Calculate the price of the bonds, and the number of bonds Rump would need to issue, if the company was to receive an AA rating
Verbal and nonverbal management communication : Explain effective communication norms in a business setting. Describe both verbal and nonverbal management communication.
What amount of colmars encumbrances were outstanding : Colmar paid $7,000,000 of the invoices received during the year. What amount of Colmar's encumbrances were outstanding at December 31, 2019

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