Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Oxford Engineering manufactures small engines. The engines are sold to manufacturers who install them in such products as lawn mowers. The company currently manufactures all the parts used in these engines but is considering a proposal from an external supplier to supply the starter assembly used in these engines. The starter assembly is currently manufactured in Division 3 of Oxford Engineering. Last year, Division 3 manufactured 132,000 starter assemblies, but over the next several years, it is expected that 170,000 assemblies will be needed each year. Per-unit costs related to the starter assembly for last year were as follows:
Direct material $1.98 Direct labor $1.08 Total overhead $5.00 Total $8.06 Further analysis of overhead revealed the following information: 35% of total overhead was variable. $120,000 of the fixed overhead were allocated costs that will continue even if the production of the starter assembly is discontinued. Tidnish Electronics, a reliable supplier, has offered to supply starter assembly units at $5.50 per unit. If the company buys the assembly from Tidnish, sales of another product can be increased, resulting in additional contribution margin of $42,000. REQUIRED 1. By how much will Oxford Engineering's total profits change if they decide to buy the starter assembly from Tidnish Electronics instead of making it themselves?
The market rate of interest for these bonds was 12%. On the first interest date, using the effective-interest method, the debit entry to Bond Interest Expense is for:
martinez companys relevant range of production is 7500 units to 12500 units. when it produces and sells 10000 units its
on december 21 2012 zurich company provided you with the following information regarding its trading
1 Million shares outstanding stock worth $20.00 per share, beta is 1.2 Also have 10-year bonds outstanding with a par value of 10 million, coupon rate of 6%, YTN 7%, yield is 2 percentage points abouve the risk free rate and 4 percentage points be..
depreciation-change in estimatemachinery purchased for 60000 by tom brady co. in 2003 wasoriginally estimated to have a
The amount of the purchases would probably be about $10,000 per month, and the terms would require National to make payment in full within 30 days. Would you recommend that your company grant credit to National under these terms? Explain the reaso..
The car was covered by a $2,000 deductible insurance policy. Norm did not file a claim against the insurance policy because of a fear that reporting the accident would result in a substantial increase in his insurance rates. His adjusted gross inc..
The following selected account balances appear on the December 31, 2010 balance sheet of Chen Co.
Each $1,000 bond is convertible into 20 shares of preferred stock of par value of $50 per share. All bonds are converted into preferred stock. Assuming that the book value method was used, what entry would be made?
carter company earned net income of 350000 last year. this year it wants to earn net income of 450000. the companys
Explain the rationale for recognizing costs as expenses at the time of product sale.
Lawler Clothing sold manufacturing equipment for $34,000. Lawler originally purchased the equipment for $98,000, and depreciation through the date of sale totaled $80,000.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd