Bynum Industries incurs unit costs of $9 ($6 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 12,100 of the assembly part at $7 per unit. If the offer is accepted, Bynum will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Bynum will realize by buying the part.
Hint: Compare your current option with new option to determine if the decision will increase or decrease net income.
Make or Buy
make buy net income increase (decrease)
variable manufacturing cost ___ ___ _______ fixed manufacturing costs ___ ___ _______ purchase price ___ ___ _______ total annual costs ___ ___ _______
Answers
It is better for Bynum Industries to continue making the assembly part in-house rather than buying it from the supplier.
Make or Buy Decision Analysis:
Variable Manufacturing Cost = $6 per unit
Fixed Manufacturing Cost = $3 per unit
Total Manufacturing Cost = $9 per unit
If Bynum Industries decides to buy the assembly part from the supplier at $7 per unit, they will save on variable manufacturing costs, but will still have to incur fixed manufacturing costs.
Therefore, the total cost saving that Bynum Industries will realize by buying the part can be calculated as follows:
Variable Manufacturing Cost per unit * Number of units = $6 * 12,100 = $72,600Purchase Price per unit * Number of units = $7 * 12,100 = $84,700
Fixed Manufacturing Cost per unit * Number of units = $3 * 12,100
= $36,300
Total Annual Cost of Making = (Variable Cost per unit + Fixed Cost per unit) * Number of units = ($6 + $3) * 12,100 = $108,300
Total Annual Cost of Buying = Purchase Price per unit * Number of units + Fixed Manufacturing Cost per unit * Number of units = ($7 * 12,100) + ($3 * 12,100) = $121,800
Net Income Increase = Total Annual Cost of Making - Total Annual Cost of Buying = $108,300 - $121,800 = -$13,500Based on the analysis, if Bynum Industries decides to buy the assembly part from the supplier, they will not realize any cost saving, but will instead incur an additional cost of $13,500.
Therefore, it is better for Bynum Industries to continue making the assembly part in-house rather than buying it from the supplier.
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Related Questions
Strategic business units that compete in a low-growth market but hold considerable market share are called ________. Their earnings and cash flows are high and stable.
Answers
Strategic business units that compete in a low-growth market but hold considerable market share are called Cash Cows because their earnings and cash flows are high and stable.
What is the Cash Cow?The cash cow is a quadrant in the BCG matrix that shows that a unit has a consistently profitable business and possesses the following characteristics:
Competes in a low-growth market.Holds considerable market share.High and stable cash flows and earnings.Thus, the strategic business unit with the above characteristics is a cash cow.
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(RR calculation) Determine to the nearest percent the IRR on the following projects a. An initial outlay of $11,000 resulting in a free cash flow of $3,000 at the end of year 1. 56,000 at the end of year 2. and $9,500 at the end of year 3 b. An initial outlay of $11.000 resulting in a free cash flow of 59.500 at the end of year 1. 56,000 at the end of year 2, and $3,000 at the end of year 3 c
Answers
The IRR for project A is 17%, the IRR for project B is 20%, and the IRR for project C is 19%, all rounded to the nearest percent.
To calculate the IRR (internal rate of return) for these projects, we need to use the formula:
NPV = ∑(Cash Flow / (1 + r)^t) - Initial Outlay
Where NPV is the net present value, Cash Flow is the cash flow for each year, r is the discount rate or IRR, t is the year of the cash flow, and Initial Outlay is the initial investment.
For project A, the NPV would be:
NPV = -11,000 + $3,000/(1+r) + 56,000/(1+r)^2 + 9,500/(1+r)^3
To solve for r, we can use a financial calculator or spreadsheet program. The IRR for project A is approximately 17%.
For project B, the NPV would be:
NPV = -11,000 + 59,500/(1+r) + 56,000/(1+r)^2 + 3,000/(1+r)^3
Again, we can use a financial calculator or spreadsheet program to solve for r. The IRR for project B is approximately 20%.
For project C, the NPV would be:
NPV = -11,000 + 56,000/(1+r) + 56,000/(1+r)^2 + 3,000/(1+r)^3
Once again, we can use a financial calculator or spreadsheet program to solve for r. The IRR for project C is approximately 19%.
In summary, the IRR for project A is 17%, the IRR for project B is 20%, and the IRR for project C is 19%, all rounded to the nearest percent.
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The weekly Kroger advertisement states that five-pound chubs of ground chuck are available for eighty-nine cents per pound. Arlene sees the advertisement; she realizes that ground chuck has not been priced this low in quite some time, so she hurries to the store to purchase some. Arlene loads seven chubs of ground chuck in her shopping cart. When she goes to the checkout to pay, however, the cashier informs Arlene that the price in the advertisement is a typo and that the correct price is $1.89 per pound. Arlene insists that the store must honor the price listed in the advertisement, because it is an offer that she has just accepted. The cashier calls the store manager for a decision. The store manager will likely explain to Arlene:_________.
i. that the advertisement is a valid offer because it is in writing.
ii. that the advertisement is a valid offer, and the store must honor the price in the advertisement.
iii. that advertisements are not offers, but merely a request for offers.
iv. that the advertisement is a valid offer because its terms are definite.
Answers
The manager would likely explain to Arelene that advertisements are not offers, but merely a request for offers.
What is an offer?In business, an offer is defined as a formal proposal to be part of a contract. In the case of stores, they offer products but the customer needs to express the proposal or make the offer by showing he/she wants to buy this product. Afterward, the store can accept the offer if the price is convenient for it.
What happens when the price in the advertisement is wrong?In the U.S. there are no laws that force stores to sell the product at an incorrect price displayed in the advertising. This is because there is a contract between the store and the customer only if the store accepts the money the customer is willing to pay.
Based on this, the store does not have the obligation to honor the price in the advertising as advertisements are only requests for offers.
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If you invested $250 at 16% how much will have after 4.5 years
Answers
Answer:
$180
Explanation:
$250 * 0.16 * 4.5 = $180
Answer:
it depends on how often it's compounded
yearly:
The final balance is $487.53.
The total compound interest is $237.53.
semi-annually:
The final balance is $499.75.
The total compound interest is $249.75.
quarterly:
The final balance is $506.45.
The total compound interest is $256.45.
bi-monthly:
The final balance is $508.79.
The total compound interest is $258.79.
monthly:
The final balance is $511.17.
The total compound interest is $261.17
bi-weekly:
The final balance is $512.48.
The total compound interest is $262.48.
weekly:
The final balance is $513.04.
The total compound interest is $263.04.
daily:
The final balance is $513.53.
The total compound interest is $263.53.
continuous:
The final balance is $513.61.
The total compound interest is $263.61.
Explanation:
hope this helps:)
What are the Fabrication Department's equivalent units of production related to conversion costs for July?
Answers
Answer:
94
Explanation:
The computation of the Fabrication Department's equivalent units of production related to conversion costs for July is shown below
Equivalent unit = Unit completed and transferred out + (ending work in process × percent completion)
= 74 + (20 × 100%)
= 94
analysts periodically communicate with high-level managers of the firms whose stock they rate. a. true b. false
Answers
a. True
Financial analysts periodically communicate with high-level managers of the firms whose stock they rate. This communication is essential for analysts to gather accurate and up-to-date information about the company's performance, strategies, and future outlook.
By engaging in discussions with company executives, analysts can better understand the business, its challenges, and its opportunities, which ultimately helps them provide more accurate recommendations to investors.
Such communication also allows analysts to ask specific questions about company operations, financial statements, and management strategies. These insights are invaluable for investors who rely on analysts' reports to make informed decisions about buying, selling, or holding stocks. Additionally, maintaining a professional relationship with high-level managers can give analysts access to exclusive information and help them predict trends in the industry.
However, it is essential for analysts to adhere to ethical guidelines and ensure that they do not engage in any insider trading or misuse the information they obtain. They must maintain their independence and objectivity to provide trustworthy advice to investors. In summary, periodic communication between analysts and high-level managers of the firms they rate is an integral part of the stock analysis process, contributing to more accurate evaluations and informed investment decisions.
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which situation is an example of skimming?
a) pop-up windows on a computer asking for you pin
b) a retailer scanning your credit card to steal its number
c) bank statements stolen from your garbage
d) a phone call from someone pretending to be a bank employee
Answers
Answer:
B.) a retailer scanning your credit card to steal its number
Explanation:
A business analyzes what competitors are charging for products.
Answers
When a business analyzes what the competitors are charging for their products, it is known as the process of marketing info management.
What is the significance of business competitors?A business competitor can be referred to or considered as an organization that deals in the same product that is offered for sale by other enterprises in the same market.
It is important for a business to keep an eye on the acts of its competitors, as it helps them in keeping themselves updated with marketing info management.
Therefore, the significance regarding the business competitors has been aforementioned.
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Credit cards can help When paid off on time regularly
Answers
Answer:
good to know.
Explanation:
Answer:
yes? I dont know if your talking about credit then your credit score will go up. but if your just telling us some info on credit cards. thanks
The County Commission of Benton County adopted its General Fund budget for the year ending June 30,comprising estimated revenues of $3,200,000 and appropriations of $2,900,000.Benton County utilizes the budgetary accounts required by GASB standards.The journal entry to record budgeted appropriations will include
A) A credit to Appropriations,$2,900,000.
B) A credit to Encumbrances,$2,900,000.
C) A debit to Estimated Expenditures,$2,900,000.
D) A credit to Budgetary Fund Balance,$2,900,000.
Answers
who ever anwser the fastest get 55pts
Answers
fI answered
Explanation:
Fastest
To be an effective planner, you should be a(n) learner in areas beyond the technicalities of your profession.
Answers
It is a true statement about being an effective planner who is a learning professional in many areas beyond the technical aspects of his profession.
How to carry out an effective plan?In the business environment, it is necessary to have a comprehensive understanding of internal and external factors that can impact the future of the organization and generate value and market positioning.
Therefore, it is essential that an effective planner is based on technical, social and visionary aspects to ensure that his action plan is positive and successful.
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Answer:proactive
Explanation:
Yield to Maturity (YTM): What It Is, Why It Matters, Formula
Answers
Yield to maturity (YTM) is the total rate of return that will have been procured by a bond when it makes all interest instalments and reimburses the original principal.
Yield to maturity (YTM) is the complete return expected on a bond on the off chance that the bond is held until it develops. Respect development is viewed as a drawn-out security yield however is communicated as a yearly rate. At the end of the day, it is the inside pace of return (IRR) of an interest in a security on the off chance that the financial backer holds the security until development, with all instalments made as planned and reinvested at a similar rate.
Yield to maturity is additionally alluded to as "book yield" or "recovery yield."
Yield to maturity is like current yield, what separates yearly money inflows from security by the market cost of that cling to decide how much cash one would make by purchasing a security and holding it for one year. However, dissimilar to the current yield, YTM represents the current worth of a security's future coupon instalments. All in all, it factors in the time worth of cash, while a basic current yield estimation doesn't. Thusly, it is much of the time thought about an additional exhaustive method for computing the return from a bond. The formula of YTM is attached as an image.
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True or False: One purpose of human resource planning is to help reduce costs by helping managers respond to shortages and surpluses of human resources at a moment's notice.
Answers
The given statement "one purpose of human resource planning is to help reduce costs by helping managers respond to shortages and surpluses of human resources at a moment's notice" is True because human resource team help the manage or management.
The human resource is the main part of the organization or company, it is performed as role from the hiring new candidate to help the manager to management their role and work in the company.
That's why, the given statement is correct or true about the one purpose of human resource planning is to help reduce costs.
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Which of the following is an example of a passive income? a. Receiving money from selling stocks b. Receiving royalties from writing a book c. Making money from selling a motorcycle d. Making money by getting paid a salary.
Answers
Answer:
b. Receiving royalties from writing a book
Explanation:
Passive income is earnings from a property, partnership or enterprise in which the person has limited involvement. It usually requires some sort of investment upfront in the form of time, work or money. Passive income is earnings from a property, partnership or enterprise in which the person has limited involvement. Therefore, the answer would be b. Receiving royalties from writing a book
Receiving royalties from writing a book, is an example of passive income. Therefore option B is correct.
What is Passive Income?Passive income is income that can be maintained with little effort. It can come from a rental property, the stock market, or a business in which you have no direct ownership.
A passive income does not automatically bring about enormous wealth. So, one shouldn't anticipate being wealthy so soon. But a person can accumulate income over time if they have consistent, lucrative passive income options.
Depending on the income source at hand, it could imply a few thousand dollars or perhaps a few hundred more.
There are many different ways to build passive income. Here are a few:
1. Real estate
2. Investing
Hence, Receiving royalties from writing a book, is an example of passive income.
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Ethics: Consider a manufacturing company that is counting the number of products completed. Consider that there were two products that were both half done and the company included the two halves as one additional completion in its count of products completed. What would be your argument for or against this presentation?
Answers
The manufacturing company in question counts the number of products completed, but it includes two halves of products as one additional completion in its count. The question asks for an argument either for or against this presentation of counting the products.
Against this presentation, my argument would be that counting two halves of products as one completion is misleading and does not accurately reflect the actual number of fully completed products. In manufacturing, a product is typically considered complete when it has gone through all the necessary stages and meets the required specifications. By counting two halves as one completion, the company is artificially inflating its production numbers, which can mislead stakeholders, such as investors and customers, into thinking that the company is more productive than it actually is. This misrepresentation can undermine trust and credibility, potentially leading to negative consequences for the company in the long run.
Accurately reporting the number of completed products is essential for transparency and accountability. It provides an accurate measure of productivity and helps stakeholders make informed decisions. By counting two halves as one completion, the company is not providing an accurate representation of its manufacturing output, which could have implications for resource allocation, financial planning, and overall performance assessment. It is important for the company to adhere to ethical standards and report production numbers truthfully and transparently, ensuring that stakeholders have access to accurate and reliable information.
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pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 15 % 32 % Bond fund (B) 9 % 23 % The correlation between the fund returns is 0.15. Suppose now that your portfolio must yield an expected return of 12% and be efficient, that is, on the best feasible CAL. a. What is the standard deviation of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answers
The standard deviation of the portfolio is 7.09%.
What is the proportion of stock in minimum risky portfolio?= [(0.23)² - (0.32*0.23*0.15)] / [(0.32)² + (0.23)² - (2*0.32*0.23*0.15)]
= 0.31421708452
= 31.42%
What is proportion of bond fund in minimum risky portfolio?= 1 - 0.31421708452
= 0.68578291548
= 68.58%
What is the expected return of minimum risky portfolio?= 0.3142*15% + 0.6858*9%
= 0.04713 + 0.061722
= 0.108852
What is the standard deviation of your portfolio?= ((0.6858)² * (0.23)² * (0.3142)² * (0.33)²) + ((2 * 0.6858 * 0.3142 * 0.32 * 0.23 * 0.15))^0.5
= (0.00026747972 + 0.00475776218)^0.5
= 0.0050252419^0.5
= 0.0708889406
= 7.09%
Therefore, the standard deviation of the portfolio is 7.09%.
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Field sales are conducted over the phone.
1) True
2) False
Answers
Answer:
true
Explanation:
Makayla bought a pair of shorts online for $73. She used a coupon code to get a 40% discount. The website also applied a 10% processing fee to the price after the discount. How much was the discount, in dollars and cents?
Answers
Answer:
39.42
Explanation:
73-40%=43.8
43.8-10%=39.42
the economic system in the united states is called a ____ economy
- market
- mixed
- command
- traditiol
Answers
Answer:
Mixed Economy
Explanation:
Hope this helps
Project manager Anna is working with her team on risk management. Match the components of risk management with what each component involves.
includes risk identification
includes impacts of risks and
responses
Includes action for minimizing risks
Includes risk monitoring
includes analysis of consequences
includes prioritization of measures
Answers
These management of risk serves as assessment and controlling of threats to an organization's capital and earnings.
What is risk management?This management entails the identifiying, analyszing and responding to risk factors that form part of the life of a business.
The risk identification in risk management includes documenting and communicating of concern of threats.The impacts of risks & responses in risk management includes efforts to assess the consequences of an existing risk.The action for minimizing risks inculudes use of insurance to minimize loss occuring from a risk.The action of risk monitoring tracks and evaluates the levels of risk in an organisation.In conclusion, the risk management is an essential part for an a project management because a managed risks will significantly increase the likelihood of project success.
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Answer:
includes risk identification- Risk Evaluation
includes impacts of risks and responses- Risk Control
Includes action for minimizing risks- Risk Control
Includes risk monitoring- Risk Evaluation
includes analysis of consequences- Risk Evaluation
includes prioritization of measures- Risk Control
Explanation:
This condition causes people to struggle to sequence the sounds in syllables and words, which means that
they know what they want to say but can't say it.
O tongue-tied
Oapraxia
O stroke
O stuttering
Answers
Answer:
tongue tied
Explanation:
they know what they want to say but can't say it
Which of the following are ways in which people can get an aptitude?
D born with it
buy it
O acquire it
borrow it
Answers
Answer:
born with it
Explanation:
hopefully it helps if not then I'm sorry
Answer:
Born with it & Acquire it
Explanation:
You can naturally be born with it or you can learn it. I got it right so gg to whoever needs this.
The graph presents a production possibilities curve, or frontier, PPF for the nation of New Carnitas. Each point on this curve represents a combination of steak and potatoes that this country can produce given its resources and technology. Based on the information in the graph, place the points as indicated.
Point A is an attainable and efficient combination of steak and potatoes.
Point B is consistent with the full employment of available resources.
Between points C and D, the opportunity cost of 1 pound of steak is 2 pounds of potatoes.
Between points E and F, the opportunity cost of 1 pound of potatoes is 3 pounds of steak.
Point G represents an unattainable combination of steak and potatoes.
Point H represents an inefficient use of New Carnitas's resources.
Answers
Given that the graph is not shown here these are the basic points in a production possibility curve.
The attainable point in a production possibility curve
This is the point that lies on the curve of the PPC. This point can be produced by the resources that are available at the moment.
The full employment of resources on the PPCThis is the point that has all the resources in the economy being used in the production of goods and resources.
The unattainable point in a PPCThe unattainable point in the curve is the point that is outside of the curve. At this point the resources available cannot be used for production.
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which of the following statements is false? a. as more buyers enter the market, the market demand curve shifts to the right. b. as income falls, the demand for an inferior good increases. c. one explanation for a movement up along a given supply curve is that more producers enter the market as price increases. d. a higher price of gasoline may reduce the demand for automobiles.
Answers
Option (c), It is untrue to say that more producers enter the market as prices rise as one explanation for a shift up along a particular supply curve.
What happens as additional producers enter the market?
More rivalry often leads to a decrease in supply, but less competition gives the producer the chance to have a bigger market share with a smaller supply.
Why do producers provide more products at higher costs?The supply curve is a formula that economists typically use to aggregate the volumes that suppliers are willing to produce at different prices. With pricing, suppliers are more likely to produce more. On the other side, more individuals likely to purchase a thing the less expensive it is.
Do additional producers lead to an increase in the supply?The total supply to a market will vary depending on the number of enterprises there. The supply of a market will increase when new businesses enter it, but it will decrease as old ones depart.
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Products related in such a way that an increase in the price of one reduces the demand for the other.
Answers
Complements are products that increase the use of other products, products related in such a way that an increase in the price of one reduces the demand for both.
A complementary appropriate is a service or product that offers fee to some other product or service. In different words, they may be things that the patron utilises in conjunction with each other. Cereal and milk, for example, or a DVD and a DVD
A Complementary exact is a product or service that provides price to another. In different phrases, they may be two items that the purchaser uses together.
A complementary product is an object that is offered collectively with the primary product. Those merchandises are used in conjunction, so complementary goods frequently bring little cost or can not be used one after the other, including petrol, SIM card, and baking powder.
Complements are items that might be consumed together. Substitutes are goods wherein you may devour one in region of the alternative. The prices of complementary or alternative items also shift the call for curve.
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which represents an employee benefit?wage paid per hour of workhealth-insurance plan with company-paid premiumsschedule with weekends offgratuity given by customers or clients
Answers
three represent employee benefits: wage paid per hour of work, health-insurance plan with company-paid premiums, and a schedule with weekends off.
The wage paid per hour of work is a direct compensation provided to employees for their services. It reflects the monetary value assigned to their labor and is an essential component of their overall remuneration.
A health-insurance plan with company-paid premiums is an employee benefit that offers financial coverage for medical expenses. The company bears the cost of the premiums, allowing employees to access healthcare services without shouldering the full burden of insurance costs.
A schedule with weekends off is another employee benefit that promotes work-life balance. By providing designated days off, such as weekends, employers acknowledge the importance of personal time and provide employees with an opportunity to rest, spend time with family, and engage in leisure activities.
On the other hand, gratuity given by customers or clients is not typically considered an employee benefit. While it represents additional income for employees in certain industries, it is contingent upon customer generosity and may not be consistent or guaranteed.
Overall, employee benefits aim to enhance the overall compensation package, support employee well-being, and create a positive work environment.
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Which are examples of a service business? (Check all that apply)
Ford Dealership
Southwest Airlines
Procter & Gamble
McDonalds
Answers
Answer: Southwest Airlines, Ford Dealership & McDonalds
Explanation: For ex, airlines, banks, electronic support providers, law firms, plumbing repair companies, movie theaters, and managing management consulting firms are pure service companies. Foodservice McDonald's outlets. In more than 100 countries worldwide, these restaurants offer a diverse, but small value list.
what three things do businesses typically do when faced with increased risk from cross-border investments?
Answers
Businesses typically take the following three steps when faced with increased risk from cross-border investments: diversification, hedging, and insurance.
Diversification means investing in a variety of assets, as it reduces the risks of a single investment. Hedging is the use of financial instruments to reduce the potential losses of a particular investment.
Lastly, insurance can be purchased to protect against any losses due to unexpected changes in the market.
By diversifying, hedging, and insuring investments, businesses are able to reduce their risk from cross-border investments.
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What is project management?