I don't need ai answer In 2016, It cost Marigold Corp. $9 per unit to produce part T5. In2017, it has increased to $12 per unit. In 2017, Southside Companyhas offered to provide Part T5 for $7 per unit to Westa. As itpertains to the make-or-buy decision, which statement is true?a. Incremental costs are $2 per unit.b. Incremental revenues are $3 per unit.c. Net relevant costs are $2 per unit.d. Differential costs are $5 per unit.

Step 1: Define Relevant CostingRelevant costing is a technique used in management accounting to…

Answered: In 2016, It cost Marigold Corp. $9 per…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 16E

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Subject: financial accounting
Which statement is true for this general accounting question?
General Accounting
Cost accounting
The cost to produce Part A was $20 per unit in 2016. During 2017, it has increased to $23 per unit. In 2017, Supplier Company has offered to supply Part A for $18 per unit. For the make-or-buy decision, incremental revenues are $5 per unit. net relevant costs are $3 per unit. incremental costs are $3 per unit. differential costs are $5 per unit.
Calculate gross profit, cost of goods sold, and selling price MBI, Inc., hat sales of $250 million for fiscal 2013. The company's gross profit ratio for that yea was 37.2%,
(2) AAA Company sells products C1, C2 and C3. In 2017, the unit selling price, variable cost per unit, and sales mix ratio of these products are expected to be as under: \table[[. Products], [, C1, C2, C3], [Selling Price per unit ($), 150, 200, 225], [Variable cost per unit ($ ), 75, 125, 150], [Sales Mix Ratio,2, 1, 3]] Fixed costs are $1,350,000. Required (1) Compute AAA breakeven sales (units). Prove your answer. (2) Calculate the sales (units) required to earn a target profit $225,000. Prove your answer.
During 2019, it cost Sheridan Company $20 per unit to produce part T5. During 2020, it has increased to $25 per unit. In 2020, Southside Company has offered to provide Part T5 for $18 per unit to Sheridan. As it pertains to the make-or-buy decision, which statement is true? O Differential costs are $7 per unit. O Incremental revenues are $5 per unit. O Incremental costs are $2 per unit. O Net relevant costs are $2 per unit.
Kando Company incurs a $9.00 per unit cost for Product A, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and selling this product, the company can purchase it for $5.00 per unit and sell it for $10.30 per unit. If it does so, unit sales would remain unchanged and $5.00 of the $9.00 per unit costs of Product A would be eliminated. 1. Prepare Incremental cost analysis. Should the company continue to manufacture Product A or purchase it for resale? (Round your answers to 2 decimal places.) Selling price per unit Cost per unit to make Cost per unit to buy Cost per unit not eliminated if bought Income per unit Company should Make Buy
None
General accounting 5.7
During 2021, it cost Bramble Inc. $13 per unit to produce Part T5. During 2022, the cost has increased to $14 per unit. In 2022, Cullumber Company has offered to sell the Part T5 for $10 per unit to Bramble. With regard to the make-or-buy decision, which statement is true? Incremental costs are $3 per unit. Net relevant costs are $3 per unit. Incremental revenues are $1 per unit. Differential costs are $4 per unit.

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