What will operating income be

Assignment Help Accounting Basics
Reference no: EM13527686

Ford Automobiles uses a standard part in the manufacture of sevral of its trucks. The cost producing 40,000 parts is $120,000, which includes fixed cost of $60,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $3.00 per unit, and avoid 30% of the fixed costs.

Assume the factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold for $12,000 profit. If Harvey Automobiles makes the part, what will its operating income be?

Reference no: EM13527686

Questions Cloud

Find which stone lands farther away from the building : Two stones are launched from the top of a tall building. One stoneis thrown in a direction 30.0^\circ above the horizontal with aspeed of 16.0 \rm {m/s}; Which stone lands farther away from the building
Determine the price variance and quantity variance : Determine the price variance, quantity variance, and total direct materials cost variance and determine the rate variance, time variance, and total direct labor cost variance.
How fast should the car be traveling just as it leaves cliff : A 10000 N car comes to a bridge during a storm and finds the bridge washed out. How fast should the car be traveling just as it leaves the cliff in order to clear the river and land safely on the opposite side
Morphology and photosynthetic activity : Compare and contrast in terms of morphology and photosynthetic activity: seaweeds vs. marine vascular plants.
What will operating income be : the part from an outside source can be used to manufacture another product that can be sold for $12,000 profit. If Harvey Automobiles makes the part, what will its operating income be?
Find the magnitude and direction of the total electric field : Two point charges are placed on the x-axis. Charge Q1=+3 microC at x==-6cm and charge Q2=+3microC at x=+6cm. Find the magnitude and direction of the total electric field at point P
Calculate how far from the dog will the suitcase land : An airplane is flying with a velocity of 98.0 at an angle of 24.0 above the horizontal. How far from the dog will the suitcase land
Prepare an income statement for subsidiary in stickles : Prepare an income statement for subsidiary in stickles and then translate these amounts to U.S. dollars - prepare a statement of retained earnings for this subsidiary in stickles and then translate these amounts into U.S. dollars.
What is the maximum speed of the water : The nozzle of a fountain jet sits in the center of a circular pool of radius 3.30 . If the nozzle shoots water at an angle of 65, what is the maximum speed of the water

Reviews

Write a Review

Accounting Basics Questions & Answers

  Amount relates to the factory

75% of this amount relates to the factory.

  Cost of long-term investment in bonds

Kern Company purchased bonds with a face amount of $400,000 between interest payment dates. Kern purchased the bonds at 102, paid brokerage costs of $6,000, and paid accrued interest for three months of $10,000. The amount to record as the cost of..

  Expected present value of the cleanup provision

If you assume that these estimates are derived from best estimates of likely outcomes and the risk-free rate is 5%, the expected present value of the cleanup provision is what ??

  What proceeds does mayberry receive from the investors

Mayberry Gas Corp. sells $200,000 of bonds to private investors. The bonds are due in five years, have an 8% coupon rate, and interest is paid semi-annually. The bonds were sold to yield 6%. What proceeds does Mayberry receive from the investors?

  Margin of safety as a percentage of sales

Knell Corporation sells a product for $230 per unit. The product's current sales are 33,000 units and its break-even sales are 26,400 units. The margin of safety as a percentage of sales is closest to:

  Cleveland metals employs a job cost system and applies

cleveland metals uses a job cost system and applies factory overhead to production at a predetermined rate of 180 of

  Determining balance of retained earnings

In April 2006, ABC Motors had Total Sales of $100,000; Total Expenses of $60,000 and a beginning balance of Retained Earnings of $25,000. The company will pay a $10,000 dividend this month (the dividend was declared this month as well). What is th..

  At the beginning of the current period griffey corp had

at the beginning of the current period griffey corp. had balances in accounts receivable of 240500 and in allowance for

  Use the details below to aid in entry determination

3. Determine the appropriate journal entries to account for the two hedging relationships for the year ended December 31, 2009. Use the details below to aid in entry determination, and assume that both hedging relationships are perfectly effective..

  Appropriate adjusting entry for vacations

No accrual entries have been made for the vacations. No over-time premium and no bonuses were paid during the period. Prepare the appropriate adjusting entry for vacations earned but not taken in 2011.

  Problem related to sharing the corporate income

Samantha owned 1,000 shares in Evita, Inc., an S corporation that uses the calendar year. On October 11, 2010 Samantha sells all of her Evita stock. Her basis at the beginning of 2010 was $60,000. Her share of the corporate income for 2010 was $22..

  Prepare journal entries necessary to reflect transactions

Accounts receivable of $138,000 were collected includingaccounts of $40,000 on which 2% sales discounts were allowed. Prepare all journal entries necessary to reflect the transactions above.

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