Calculate the reduction in failure costs per unit, Cost Accounting

Each unit of a product requires four components. The average number of components is 4.25 due to component failure. Purchasing higher quality components can reduce the average number of components to four per unit. The cost per component is $350. Calculate the reduction in failure costs per unit due to purchasing higher quality components.

A. $43.75

B. $350

C. $175

D. $87.50

Related Discussions:- Calculate the reduction in failure costs per unit

Giardia, Place a prepared slide of Giardia first under tlie low power and t...

Place a prepared slide of Giardia first under tlie low power and then under the high power of the microscope and observe tlie followilig characters. i) Bilaterally symmetrical

Operating cost.., procedure,advantages ..

procedure,advantages ..

Computing information, This coursework is intended to help you develop your...

This coursework is intended to help you develop your understanding of shell scripting in both a Windows and Unix environment. You should undertake this coursework in groups cons

Define elasticity - marginal cost, 1) Define Elasticity. If you have a pro...

1) Define Elasticity. If you have a product where elasticity is less than one, what does that mean? Is it good, bad for the firm? 2) Why will firms not shut down as soon as th

Cost volume profit analysis, Cost Volume Profit Analysis 1. Post Publish...

Cost Volume Profit Analysis 1. Post Publishers has collected the following data for recent months: Month Issues published Total cost May

Direct labour rate variance, Direct Labour Rate Variance It is the dif...

Direct Labour Rate Variance It is the difference among the actual direct labour rate and the standard direct labour rate for the total hours worked. Utilizing an equation,

Determine the current ratio, When firms enter into loan agreements with the...

When firms enter into loan agreements with their bank it is very common for the agreement to have a restriction on the minimum current ratio the firm has to maintain. So, it is imp

Storage and issue of material, Storage and Issue of Material A number ...

Storage and Issue of Material A number of questions are relevant in this control of materials throughout storage and question of materials. These are as: a) Stock control r

The cost cycle - double entry system, entries to be entered into a ledger a...

entries to be entered into a ledger account for the month of July 2009 & prepare an incoem statement. balances at 1/7/2009 Materials control $6150 Labour control (accrued wages)

Financially acceptable, Suppose that you are the chief financial officer at...

Suppose that you are the chief financial officer at Porter Memorial Hospital. The CEO has asked you to analyze two proposed capital investment-Project X and Project Y. Every proj

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages