The Hershey Kayak Making Co. is considering whether or not to make a key part for one of its kayak models. Its projected total requirement for the part is 15,000 units, and a trusted supplier can make the part for $25 per unit. Donald Biden, the owner, estimates that the purchase contract will cost $250 to prepare, and if Pearson made the part in-house, an additional investment in equipment would cost $30,000; the variable cost for the part would be $14 per unit. Help Donald to determine the cost of buying.

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A: Schedule showing the estimated annual net income from the proposal to manufacture…

Q: Assume that HASF  furniture Inc., as described, currently purchases the chair cushions for its lawn…

A: The companies make their make or buy decisions based on comparative analysis of total costs incurred…

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A: Shelby Industries has capacity to produce 45,000 oak shelves per year.   But they are Currently…

Q: Neptune Company has developed a small inflatable toy that it is anxious to introduce to its…

A: break-even analysis is the the target profit analysis. Under this approach we compute the…

Q: Assume that HASF  furniture Inc., as described, currently purchases the chair cushions for its lawn…

A: Assume that HASF  furniture Inc., as described, currently purchases the chair cushions for its lawn…

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A: The decision to buy or make the product depends on the cost of making and the cost of buying the…

Q: MSI is considering outsourcing the production of the handheld control module used with some of its…

A: Relevant cost of making per unit = Direct materials + Direct labor + Variable manufacturing overhead…

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A: Given information: •The fastening pins are sold for = php 35 each •Design A will require 16 hours of…

Q: company can buy the part from an outside supplier for​ $2 per unit and avoid​ 20% of the fixed…

A:

Q: Shocking Electronics uses a standard part to make different types of radios. The total cost to make…

A: Working note: Fixed cost incurred if parts outsource Total fixed cost = $40000 $40000*80%=  $32000

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A: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…

Q: Neptune Company has developed a small Inflatable toy that it is anxlous to Introduce to Its…

A: Formulas:

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A: “Since you have asked multiple questions, we will solve the first three questions for you. If you…

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A: Definition: Cost: The amount paid to purchase the asset, install it, and put it into operations, is…

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A: Incremental analysis is a tool used in managerial accounting when choosing between alternative…

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A: Motor division's minimum acceptable price would be = Variable cost expected to be incurred on the…

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A: Given information is: Nagle Electric, Inc., of Lincoln, Nebraska, mustreplace a robotic Mig welder…

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A: The design that generates higher profits must be adopted over the other.

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A: Prepare the income statement as follows: Result:

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A: calculation for additional cost incurred are as follows:

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A: The differential analysis is made by the company to measure the difference in the cost and revenue…

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A: Avoidable Cost is relevant cost in decision making process. and unavoidable cost is not relevant in…

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A: Process Costing: It is the method in which the cost of a product is determined on the basis of the…

Q: Birkenstock is considering adding a new Big Buckle sandal to its current product offerings.…

A: PLEASE LIKE THE ANSWER YOUR RESPONSE MATTERS  Requirement 1: Birkenstock's expected 2021 profit :…

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A: Break-even point: A breakeven analysis is a calculation of the point at which revenue equals…

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A: Solution: Total cost to buy = units * purchase price = 50000*65 = 3250000 Total costs to make =…

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A: Fixed cost remain fixed whatever may be the level of output where as variable cost will vary with…

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A: Transfer price is the price which is charged by one department of the same company charges another…

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A: A B C D E F 1. Internal 1           2.  Fixed cost 200,000         3. Variable cost 17…

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A: Leasing- It is a contract between two parties for use of an asset (usually a costly one). The party…

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A: This question is related to transfer pricing. Transfer pricing method of accounting is generally…

Q: Howell Corporaon produces an execuve jet for which it currently manufactures a fuel valve; the cost…

A: Incremental savings per unit = Total Incremental Savings / Total no. of units

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A: A relevant cost is a cost that only relates to a specific management decision, and which will change…

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Q: Assume that HASF  furniture Inc., as described, currently purchases the chair cushions for its lawn…

A: Assume that HASF  furniture Inc., as described, currently purchases the chair cushions for its lawn…

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A: In-house Manufacturing is the process of conducting an activity in the company only rather than…

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A: Net income is the total amount of money earned by an individual or company in a certain time period…

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A: The Break-even point is the level of sales at which the operating profit is zero. In other words,…

Q: Neptune Company has developed a small inflatable toy that it is anxious to introduce to its…

A: Break-even point = Fixed cost / Contribution per unit (Sale price - Unit Variable cost) Weighted…

Q: MSI is considering outsourcing the production of the handheld control module used with some of its…

A: Lets understand the basics. When there is decision requires between the make a product or buy a…

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A: When there are two alternatives of either making or purchasing the product from outside, then total…

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A: Opportunity cost refers to that cost which is saved in case one alternative is selected over the…

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A: Comparing the cost in both cases i.e buy and make and whose cost is less and increase the profit…

Q: Shelby about buying 1,200 shelves for a new project and is willing to pay $26 each. The shelves can…

A: Given Information : Capacity to produce = 45,000 shelves Currently selling  = 40,000 shelves…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.