Sparrow co. is currently operating at 80% of capacity and is currently purchasing a part used in its manufacturing operations for $8.00 a unit. the unit cost for sparrow co. to make the part is $9.00, which includes $0.60 of fixed costs. if 4,000 units of the part are normally purchased each year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease for making the part rather than purchasing it?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Sparrow co. is currently operating at 80% of capacity and is currently purchasing a part used in its manufacturing operations for $8.00 a ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
What are the cost and consequences of providing welfare payments and consumer subsidies
Answers (1)
Lava Excavators, Inc., needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company. Lava tells Mining that it must receive the drill by Tuesday or it will lose $10,000. Mining ships the drill late.
Answers (1)
Julia bought a used car. She found out after she made the purchase that the car had previously been in an accident. What right was Julia denied?
Answers (1)
Jean-Ann works in the finance business. She analyzes insurance applications in order to determine the level of risk involved in insuring the applicant, then decides whether or not to insure them. Jean-Ann works as A) an Insurance Underwriter.
Answers (1)
Barrington Mills Manufactures denim cloth from two primary raw materials, cotton and dye. Work-in-process includes lapped cotton, spun yarn, and undyed cloth, while finished goods includes three grades of dyed cloth.
Answers (1)
New Questions in Business
1. Alejandro and Roger are working on a group project for class that requires writing a paper and designing charts to explain the information contained in the paper.
Answers (1)
The production manager for Beer etc. produces 2 kinds of beer: light (L) and dark (D). Two resources used to produce beer are malt and wheat. He can obtain at most 4800 oz of malt per week and at most 3200 oz of wheat per week respectively.
Answers (1)
Sara shouppe has invested $100,000 in an account at her local bank. the bank will pay her a constant amount each year for 6 years, starting one year from today, and the account's balance will be 0 at the end of the sixth year.
Answers (1)
Jeremy Abdul is a marketing manager at one of the largest advertising firms in the northwest. If Jeremy undertakes decisions on brand awareness, promotional campaigns, and guerrilla marketing, what level of decision making would he be involved with?
Answers (1)
Stone Corporation is a manufacturing company that makes small electric motors it sells for $45 per unit. The variable costs of production are $25 per motor, and annual fixed costs of production are $800,000.
Answers (1)