of the fixed costs can be avoided. below what external price for the course

How much of the fixed costs can galley industries avoid?

Transcribed image text: Concord Industries can produce 500 units of a necessary component part with the following costs Direct Materials Direct Labour Variable Overhead Fixed Overhead $76000 20400 60500 9100 If Concord Industries purchases the component externally, $2600 of the fixed costs can be avoided. Below what external price for the 500 units would Concord choose to …

What are the unavoidable fixed costs of making the component?

Hamilton Co. can produce 100 units of a necessary component part with the following costs: Direct materials. $40440. Direct labour. 26555. Variable overhead. 71773. Fixed overhead. 32157. If Hamilton purchases the component externally, $1437 of the fixed costs can be avoided. Below what external price for the 100 units would Hamilton choose to buy instead of make?

How much fixed cost can the manufacturing company avoid?

If Galley Industries purchases the component externally, $3,000 of the fixed costs can be avoided. Below what external price for the 500 units would Galley …

How should fixed costs be handled when making a decision?

If Galley Industries purchases the component externally, $2,000 of the fixed costs can be avoided. Below what external price for the 100 units would Galley choose to buy instead of make? The answer is $52,000. I guess from trying to figure out why it's 52,000 I would assume the breakdown is: Direct material 20,000 direct labor 9,000

How should that portion of fixed costs that are unavoidable be handled when making a decision on whether to eliminate an unprofitable segment?

How should that portion of fixed costs that are unavoidable be handled when making a decision on whether to eliminate an unprofitable segment? a. They should be subtracted from the contribution margin and if that results in a net loss, the segment should be eliminated.

Which of the following will not be a relevant cost?

A sunk cost will never be a relevant cost because it will always be there regardless of the alternative chosen.

What roles does a trade in allowance on old equipment play in a decision to retain or replace equipment?

split-off point. What role does a trade-in allowance on old equipment play in a decision to retain or replace equipment? A. It is relevant since it increases the cost of the new equipment.

Which of the following are synonyms for avoidable cost?

An avoidable cost is also called an escapable cost.Jun 30, 2021

Which of the following costs is not relevant when deciding whether to keep or replace a piece of equipment?

Sunk costs are not relevant in incremental analysis. When a company is deciding to retain or replace equipment, trade-in value of the existing equipment is irrelevant. The cash disposal value of existing equipment is considered a sunk cost and is therefore irrelevant in a decision to retain or replace the equipment.

Are variable costs always relevant cost?

Variable costs are always a relevant cost: Variable costs are relevant costs only if they differ in total between the alternatives under consideration.

What are trade-in allowances?

Trade-in allowance The allowance is the amount by which the dealer will reduce the cost of your new car as a result of trading in your old one. This is like a credit from the sale of your existing car that is put toward the purchase of your new vehicle.May 30, 2019

Which of the following is relevant when deciding to replace old equipment with new?

The operating expense of the old equipment is relevant to the replacement decision. The book value of the old equipment is one of the most important factors to consider in deciding to replace it.

Which of the following costs is irrelevant in the decision-making of a special order when there is idle production capacity?

Marketing costs will be an irrelevant cost in the decision making of a one-time-only special order. A sunk cost is a relevant cost in a decision making.

What is the probability of a country club member earning $98,000?

The data set represents the income levels of the members of a country club. Estimate the probability that a randomly selected member earns at least $98,000. 112,000 126,000 90,000 133,000 94,000 112,000 98,000 82,000 147,000

How much does Cooper Construction equipment cost?

Cooper construction is considering purchasing new technologically advanced equipment. The equipment will cost $625,000 with a salvage value $50,000 and the end of 10 years. The equipment is expected to general additional annual

INCREMENTAL ANALYSIS

Basic concepts Steps in decision making process 5. What is the first step in the decision making process? A. Specify the criteria by which the decision is to be made. B. Consider the strategic issues regarding the decision context. C. Perform an analysis in which the relevant information is developed and analyzed. D. Compare the alternatives.

A B C

Selling price per unit P16 P21 P Variable cost per unit 7 11 13 Contribution margin per unit P 9 P10 P 8 Direct labor hours per unit 1.0 1.5 2. Machine hours per unit 4.5 2.0 2. In what order should the three products be produced if either the direct labor-hours or the machine hours are the company’s production constraint? A. B. C. D.

B. P18.00 D. P 1

Due to a strike in its supplier’s plant, Adrenal Company is unable to purchase more material for the production of CADS. The strike is expected to last for two months. Adrenal Company has enough material on hand to continue to operate at 30% of normal levels for the two months.