What are the relevant costs for rubium

Assignment Help Accounting Basics

Reference no: EM131972094

Problem

Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows:

Direct materials $ 45.00
Direct labor 35.00
Variable overhead 33.00
Fixed overhead 20.00
Total $133.00

Crayola Technologies Inc. has contacted Rubium with an offer to sell 5,000 of the subassemblies for $135.00 each. Rubium will eliminate $65,000 of fixed overhead if it accepts the proposal.

What are the relevant costs for Rubium?

Reference no: EM131972094

Questions Cloud

Post the entries to the t-accounts provided : Post the entries to the T-accounts provided. Show how the stockholder's equity section of the balance sheet will look after this transaction.

Importance of assessing firm historical financial statements : Explain the importance of assessing a firm's historical financial statements. What type of ramifications can occur if the statements are not taken.

Equally split between coke and pepsi : If we want to test whether the preferences are equally split between Coke and Pepsi, what is the null hypothesis?

Explain what is meant by exchange rate forecasting : Explain what is meant by exchange rate forecasting? What techniques can be used to do such forecasting? What is meant by forecasting bias?

What are the relevant costs for rubium : Rubium Micro Devices currently manufactures a subassembly for its main product. What are the relevant costs for Rubium?

How you can test the empirical validity of the capm : Explain, and in details, how you can test the empirical validity of the Capital asset Pricing Model. In addition, comment on what determines the value.

Make a contribution format income statement segmented : Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Make a contribution format income statement segmented by product lines.

Discuss the behavioural implications of planning and control : Discuss the behavioural implications of planning and control when a company's management employs - first part requires you to prepare a basic master budget

Define how you can estimate weighted average cost of capital : Explain in details how you can estimate weighted average cost of capital for a listed firm in addition discuss in your answer any problems (Statistical).

User Account

All Pages