Should the corporation make or buy the bindings

Assignment Help Accounting Basics
Reference no: EM13525257

The ski selected is a mass market ski with a special binding and will be sold for $80 per pair. A $125000 fixed charge will be absorbed by the ski, however, to allocate a fair share of the company's present fixed cost to the new product.

Using the estimated sales and production of 10000 pair of skis as the expected volume,

Direct labor $35

Direct material 30

Total overhead 15

Total cost $80

They discussed the purchasing of the binding from a subcontractor at $5.25 per binding, or $10.50 per pair with direct-labor and variable cost would be reduced by 10% and direct materials costs would be reduced by 20%.

Should the Corporation make or buy the bindings? Show calculations to support answer.

Reference no: EM13525257

Questions Cloud

What is the acceleration of the batmobile : Mitch is driving the Batmobile (which he stole). He is driving at a constant velocity of 40 m/s. What is the acceleration of the Batmobile
Explain catalyst on a chemical reaction is to react : Is it true that the effect of a catalyst on a chemical reaction is to react with product, effectively removing it and shifting the equilibrium to the right
Find what is the direction the the pigeon should fly : Suppose you cycle 10.0 km to the east and 15.0 km north to get to a shopping mall from home. what is the direction the the pigeon should fly and how far must it travel to get home in the shortest time
Interfere with cellular respiration such as cyanide : There are several poisons that interfere with cellular respiration such as cyanide, 2,4-Dinitrophenol (DNP), rotenone, and oligomycin. Where have these and other similar poisons been used and for what purpose?
Should the corporation make or buy the bindings : Should the Corporation make or buy the bindings and show calculations to support answer.
Explain nacl mixture will act as a more effective buffer : Is it true that an HCl/NaCl mixture will act as a more effective buffer than a mixture of CH3COOH & CH3COONa
Find the speed of the passenger relative to the shore : Two boats are heading away from shore. Boat 1 heads due north at a speed of 2.94 m/s relative to the shore. find the speed of the passenger relative to the shore
Define what is the solubility of caf2 in a solution : What is the solubility of CaF2 in a solution that has an equilibrium concnetration of 0.01 M EDTA ^ 4- (aq)? Ksp (CaF2) = 3.9 x 10^-11 and Kf for [Ca(EDTA)]2- = 5.0 x 10^10
How much assembly cost is assigned to titanium racquets : Sitwell is considering switching from one overhead rate based on labor hours to activity-based costing and using activity-based costing, how much assembly cost is assigned to titanium racquets?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Profit margin ratio and gross profit rate

Compute the profit margin ratio and gross profit rate. Caltor Company's assets at the beginning of the year were $770,000 ,and were $830,000 at the end of the year. To qualify for full credit, you must state the formula you are using, show your co..

  Find different methods of setting internal transfer pricing

What is the difference between external and internal pricing? What factors must be considered when setting internal transfer pricing between company divisions? What are the different methods of setting internal transfer pricing? Which is the most ..

  The following information pertains to sally corporation

the following information pertains to sally corporationmiddot the company previously collected 1500 as an

  Face value of convertible bonds

Global sells $1,350,000 face value of convertible bonds at a price of 101.Global realizes proceeds of $ 1,363,500.The ten year bonds carry an interest rate(coupon rate) of 6% with interest paid semi annually.

  Prepare journal entries to record the events

The program itself, which is accounted for in a special revenue fund, is funded by both direct contributions and the income from the permanent fund. At the start of the year, the special revenue fund had assets (all invested) of $26,000.

  Breakeven point in sales dollars for redex

The following monthly data are available for RedEx, which produces only one product that it sells for $84 each. Its unit variable costs are $28 and its total fixed expenses are $64,960. Sales during April totaled 1,600 units. (a) How much is the b..

  If this change takes place and selling price per skateboard

due to an increase in labor rates the company estimates that variable costs will increase by 1.60 per skateboard next

  Journalize the following selected transactions completed

journalize the following selected transactions completed during the current fiscal yearjan 3 the board of directors

  Describe the techniques used for analyzing internal control

describe the techniques used for analyzing internal control systems?how do internal auditing and external auditing of

  Receivables of consolidated balance sheets

At Dec 31, Year 1, Grey, Inc. owned 90% of Winn Corp, a consolidated subsidiary, and 20% of Carr Corp., an investee in which Grey cannot exercise significant influence on the same date

  Computing dpad of maria corporation

The company also sells dinnerware that is purchased from unrelated foreign producers. During the tax year 2010, Maria had a U.S. profit of $1.2 million (QPAI) and a profit from the imported merchandise of $100,000. What is Maria's DPAD?

  Accurate representation concerning revenue recognition

Which of the following is not an accurate representation concerning revenue recognition?

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