## Question

###### X Company is considering buying a part next year that they currently make. A company has...

X Company is considering buying a part next year that they currently make. A company has offered to supply this part for $14.74 per unit. This year's total production costs for 55,000 units were:

Materials | $335,500 |

Direct labor [all variable] | 231,000 |

Total overhead | 192,500 |

Total production costs | $759,000 |

Of the total overhead costs, $55,000 were fixed, and $42,350 of these fixed overhead costs were unavoidable. If X Company buys the part, the resources that were used for production can be rented out for $75,000. Production next year is expected to increase to 59,000 units. If X Company continues to make the part instead of buying it, it will save _____?

## Answers

Differential analysis :

Make Buy Direct material 359900 Direct labour 247800 Variable overhead 147500 Fixed overhead 12650 Opportunity cost 75000 Purchase cost 869660 Total 842850 869660 If X Company continues to make the part instead of buying it, it will save 26810

#### Similar Solved Questions

1 answers

##### Stellar Plastics is analyzing a proposed project. The company expects to sell 11,000 units, give or...

Stellar Plastics is analyzing a proposed project. The company expects to sell 11,000 units, give or take 4 percent. The expected variable cost per unit is $7.00 and the expected fixed cost is $35,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent rang...

1 answers

##### An electrical firm manufactures light bulbs that have a length life with normal distribution, and mean...

An electrical firm manufactures light bulbs that have a length life with normal distribution, and mean equal to 800 hours, and a variance of 9. Find the probability that a random sample of 38 light bulbs will have a sample variance S2 greater than 9.97. Find the probability that a random sample of 3...

1 answers

##### Question #3 (25 marks) The summary balance sheet of Corrigan Inc. as at December 31, 2019...

Question #3 (25 marks) The summary balance sheet of Corrigan Inc. as at December 31, 2019 is as follows: Corrigan Cash $ 1,000 Accounts Receivable 300 Inventory ...

1 answers

##### Assume that you are an investor/shareholder, do you (personally) prefer dividend or stock repurchases? Why? Explain.

Assume that you are an investor/shareholder, do you (personally) prefer dividend or stock repurchases? Why? Explain....

1 answers

##### Problem 3 Although your initial calculations were quite precise, you learn that Tegaderm experiences multiple stock-outs...

Problem 3 Although your initial calculations were quite precise, you learn that Tegaderm experiences multiple stock-outs in the pharmacy. You have also learned that demand is actually variable; it has a mean of 80 dressings per day, with a daily standard deviation of 10. Additionally, 3M takes longe...

1 answers

##### Question 4 Not yet answered Marked out of 15.00 The wavefunction of an electron is given...

Question 4 Not yet answered Marked out of 15.00 The wavefunction of an electron is given by /2 sin (2T Calculate the probability of finding the electron 0<x<a/2. Answer...

1 answers

##### Question 5 (2 points) For which of the following compounds will the M+2 peak intensity be...

Question 5 (2 points) For which of the following compounds will the M+2 peak intensity be equal to the intensity of the molecular ion peak M? a) CH3CH2CH OH 0 b) CHỊCH CHANH, Oc) CH3CH2CH_Br d) CH,CH2CH2C1 Question 6 (2 points) What is the product of the reaction below? "OH PCC o OH O OH T...

1 answers

##### Describe how a health educator might function in the following settings; daily tasks and objectives on...

Describe how a health educator might function in the following settings; daily tasks and objectives on International Agencies Non-traditional Settings on International Agencies Non-traditional Settings include the Advantage and disadvantage of each functions...

1 answers

##### Chapter 07: Survey Research A brief description of the following in own words. 7.1 Overview of...

Chapter 07: Survey Research A brief description of the following in own words. 7.1 Overview of Survey Research What is Survey Research? History and Uses of Survey Research 7.2 Constructing Surveys Survey Responding as a Psychological Process A Cognitive Model Context Effects on Survey Responses Writ...

1 answers

##### A ball moves subject to a force that varies with position. The force = 174 N...

A ball moves subject to a force that varies with position. The force = 174 N m2, and the ball moves in a straight line from ří = 15.3mi to 12 = 15.3mi + 10.5mj, what is the work done by the force? Answer in Joules. Note that this is a conservative force, and that û = 12ty. You will...

1 answers

##### ? ? save & Exit )(Submit Question 4 (of 4) ? > value: 25.00 points An...

? ? save & Exit )(Submit Question 4 (of 4) ? > value: 25.00 points An investment fund has the following assets in its portfolio: $38 million in fixed-income securities and $38 million in stocks at current market values. In the event of a liquidity crisis, it can sell its assets at a 94 percen...

1 answers

##### Suppose that NoP(X5)6 and P(X 2):2 find P( 3< X < 4).

Suppose that NoP(X5)6 and P(X 2):2 find P( 3< X < 4)....

1 answers

##### 10.00 points Fleetwood Company recently had a computer malifunction and lost a portion of its acc...

10.00 points Fleetwood Company recently had a computer malifunction and lost a portion of its accounting records. The company has reconstructed some of its financial performance measurements, including components of the return on investment calculations Required: Help Fleetwood rebuild its informati...

1 answers

##### The coefficient of static friction between the 3.00 kg crate and the 33 degree incline of...

The coefficient of static friction between the 3.00 kg crate and the 33 degree incline of above Fig. is 0.250. What minimum force F(-N) must be applied to the crate perpendicular to the incline to prevent the crate form sliding down the incline?...

1 answers

##### How might social media and popular culture affect a company’s functional strategies for international expansion, particularly...

How might social media and popular culture affect a company’s functional strategies for international expansion, particularly regarding products and promotion?...

1 answers

##### Let a=2, b=2. Locate the centroid, (x,y) of the area shown.

Let a=2, b=2. Locate the centroid, (x,y) of the area shown....

1 answers

##### Can someone please help me with this? Thanks! 05 Question (5 points) e See page 246 A semiprofessional baseball team ne...

Can someone please help me with this? Thanks! 05 Question (5 points) e See page 246 A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the concessions 50/50 with the city but keeps all the revenue from ticket sales. The city c...

1 answers

##### Homework • Unanswered. Due in a day Rank the indicated protons in order of most downfield to most upfield. WI Drag and...

Homework • Unanswered. Due in a day Rank the indicated protons in order of most downfield to most upfield. WI Drag and drop to order = A 2 = B 3 = c 1 Unanswered 2 attempts left Submit...