User Account

All Pages

What is the maximum contract cost

Assignment Help Managerial Accounting
Reference no: EM132482226

Question 1: Alieia Boat Company manufactures 10 luxury yachts per month. A navigation system is included in each yacht. Alieia Boat manufactures the navigation system in-house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $300, and the fixed costs are $38,000 per month. If it outsources the security system, fixed costs could be reduced by half, and the vacant facilities could be rented out to earn $3000 per month of rental income. What is the maximum contract cost that Alieia should pay for outsourcing?

Option A. any cost lower than $2500 per unit

Option B. any cost lower than $2200 per unit

Option C. any cost lower than $300 per unit

Option D. any cost lower than $3800 per unit

Reference no: EM132482226

Questions Cloud

What are the target variable costs per unit per year : Assuming that fixed costs cannot be reduced, what are the target variable costs per unit per year? Assume all units produced are sold
Draw the cash flow diagrams : Initial Cost = $13,000 Annual Cost Savings (this is like revenue, beginning EOY1) = $2000
What is the desired profit for the year : Determine and What is the desired profit for the year? Wheeler Company is a price-taker and uses a target-pricing approach.
Pursuit of economic growth as a government policy : Make a short argument either for or against the pursuit of economic growth as a government policy.
What is the maximum contract cost : Vacant facilities could be rented out to earn $3000 per month of rental income. What is the maximum contract cost that Alieia should pay for outsourcing?
Graph the impact of this shock on the canadian economy : Graph the impact of this shock on the Canadian Economy, State whether the Canadian economy is in an expansionary or recessionary output gap following this shock
Determine what are the target fixed costs : Variable cost is $190 per unit and cannot be reduced. Assume all products produced are sold. Determine What are the target fixed costs?
Determine what are the target fixed costs : Variable cost is $190 per unit and cannot be reduced. Assume all products produced are sold. Determine What are the target fixed costs?
Prepare record the issuance of stock for the building : Prepare Record the issuance of stock for the building. On July 1, 2011, Kosa, a new corporation, issued 20,000 shares of its common stock

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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