In 2023, Bluebird Manufacturing produced Component X34 at a cost of $15 per unit. In 2024, their production cost increased to $18 per unit. Eastway Suppliers has offered to provide Component X34 for $14 per unit. Regarding the make-or-buy decision, which statement is true? a. Incremental costs are $3 per unit b. Incremental revenues are $4 per unit c. Net relevant costs are $4 per unit d. Differential costs are $4 per unit
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- The cost to produce Part A was $5 per unit in 2021. During 2022, it has increased to $9 per unit. In 2022, Carla VistaCompany has offered to supply Part A for $6 per unit. For the make-or-buy decision, net relevant costs are $4 per unit. differential costs are $3 per unit. incremental costs are $4 per unit. incremental revenues are $1 per unit.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.In 2024, Sunland Company had a break-even point of $372,000 based on a unit selling price of $6.00 and fixed costs of $111,600. In 2025, the unit selling price and the unit variable costs did not change, but the break-even point increased to $495,000. (a) * Your answer is incorrect. Compute the unit variable costs and the contribution margin ratio for 2024. (Round unit variable cost to 2 decimal places, e.g. 2.25 and contribution margin ratio to O decimal places, e.g. 20%.) Unit variable cost Contribution margin ratio %
- Frey Auto makes and sells batteries. In 2020, it made 90,000 batteries and sold 54,000 of them, at an average selling price of $65 per unit. The following additional information relates to Frey Auto for 2020 (Click the icon to view the additional information) What is Frey Auto's inventoriable cost per unit using (a) variable costing, and (b) absorption costing? (Round intermediary and final calculations to the nearest cent. $XXXXX) Frey Auto's inventoriable cost per unit using (a) variable costing is COFFEEThe 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.Assume that a manufacturer can purchase a needed component from a supplier at a cost of $9.50 per unit, or it can invest $60,000 in equipment and produce the item at a cost of $7.00 per unit. (a) Determine the quantity for which total costs are equal for the make and buy alternatives. (b) What is the minimum cost alternative if 15,000 units are required? What is the minimum cost? (c) If the number of units required of the component is close to trhe break even quantity, what factors might might influence the final decision to make or buy
- Currently, the unit selling price of a product is $390, the unit variable cost is $320, and the total fixed costs are $1,008,000. A proposal is being evaluated to increase the unit selling price to $440. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. unitsUrmila benWillie Company sells 28,000 units at $36 per unit. Variable costs are $20.16 per unit, and fixed costs are $190,700. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) per unit c. Income from operations
- urrently, the unit selling price of a product is $410, the unit variable cost is $340, and the total fixed costs are $1,176,000. A proposal is being evaluated to increase the unit selling price to $460. a. Compute the current break-even sales (units).fill in the blank 1 of 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.fill in the blank 1 of 1 unitsCurrently, the unit selling price of a product is $410, the unit variable cost is $340, and the total fixed costs are $1,176,000. A proposal is being evaluated to increase the unit selling price to $460. a. Compute the current break-even sales (units).fill in the blank 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.fill in the blank 2 unitsSuppose the relevant carrying cost per unit per year was $20 and the relevant ordering cost per purchase order was $200. Suppose further that Alpha calculates EOQ after incorrectly estimating relevant carrying cost per unit per year to be $10 and relevant ordering cost per purchase order to be $400. Calculate the actual annual relevant total costs of Alpha’s EOQ decision. Compare this cost to the annual relevant total costs that Alpha would have incurred if it had correctly estimated the relevant carrying cost per unit per year of $20 and the relevant ordering cost per purchase order of $200 Calculate and comment on the cost of the prediction error.