Below is cost data for Zoom's production of wheels, seats, and calipers. Outside suppliers have offered to provide wheels for $7.29, seats for $7.79, and calipers for $2.53 per piece. Both wheels and seats are branded with the Zoom logo, and that logo will need to be added at the Zoom factory at a cost of $0.50 each for any of these components that are outsourced. For all three components, 75% of the fixed costs are avoidable, and will be eliminated if the component's production is outsourced. In addition, seats and calipers are both produced out of the same small factory space. If both seats and calipers were outsourced, Zoom could lease the space out and increase net income by $6,000 per year, while eliminating all fixed costs for the two components.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Below is cost data for Zoom's production of wheels, seats, and calipers. Outside suppliers have offered to provide wheels for $7.29, seats ...” 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
Which of the following is unlikely to be a primary building block in a company's organizational structure? A. Functional departments B. Process and operations departments C. Empowered employee departments D.
Answers (1)
Under the free cash flow approach to valuation: share value equals the present value of all free cash flows. share value is found by subtracting the value of debt and preferred stock from the enterprise value.
Answers (1)
Federal Trade Commission regulations require that: A. all used cars be sold with a warranty. B. used car buyers be informed if the vehicle comes with a warranty. C. used cars over 100,000 miles cannot be sold. D.
Answers (1)
What is the overall change in cash resulting from: $300 increase in inventories, $150 increase in accounts payable, $120 decrease in accounts receivable, $60 decrease in other current assets, $150 decrease in other current liabilities?
Answers (1)
Andrew and Bthe Trimble live in Swarthmore, PA. Beth's father, Darnell, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U. S.
Answers (1)
New Questions in Business
On January 1, 2013, M. Johanson Company purchased equipment for $36,000. The company is depreciating the equipment at the rate of $500 per month. The book value of the equipment at December 31, 2013 is:A) $0. B) $6,000. C) $30,000. D) $36,000.
Answers (1)
Department B had a beginning inventory of 2,400 units, 25% completed; an ending inventory of 2,700 units, 2/3 completed, and received 4,900 units during the period from Department A.
Answers (1)
Suppose two paper plants dump industrial waste into a river. The EPA decides pollution concentration is too high at a receptor site down river from the paper plants.
Answers (1)
What is an ineffective practice with regard to building trust within your department?
Answers (1)
Which of the following could be an ideal randomized controlled experiment to study the desired causal effect? A. Allow all students an extra day to study for the microeconomics exam.
Answers (1)