Waterway Industries incurs the following costs to produce 10600 units of a subcomponent: Direct materials $8904 Direct labor 11978 Variable overhead 13356 Fixed overhead 16200 An outside supplier has offered to sell Waterway the subcomponent for $2.85 a unit. If Waterway accepts the offer, by how much will net income increase (decrease)? a. $(3074) b. $(9328) c. $4028 d. $20228

Q: Refer to Lopez Corporation. Assume that Lopez has sufficient idle capacity to produce the 1,000…

A: Sales Revenue: Sales revenue is the amount earned by the company by selling the goods or providing…

Q: Ortega Industries manufactures 15,700 components per year. The manufacturing cost of the components…

A: Lets understand the basics. When there is option of whether to produced internally or buy from…

Q: Coronado Industries incurs the following costs to produce 9100 units of a subcomponent: Direct…

A: Net income refers to the net amount of money earned by an individual after subtracting taxes and…

Q: Ortega Industries manufactures 21,300 components per year. The manufacturing cost of the components…

A: calculation of effect on  operating profit  if purchase the component out side are as follows

Q: Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit…

A: Relevant cost primarily used in managerial accounting. The relevant cost concept useful for…

Q: Company manufactures part G for use in its production cycleThe cost per for each of 12,000 units of…

A: To determine which alternative is more desirable for Plainfield Company regarding part…

Q: Recher Corporation uses part Q89 in one of its products. The company's Accounting Department reports…

A: Whenever organization to choose between whether to continue operation or close the operation of any…

Q: Alpha currently makes a subassembly for its main product. The costs per unit are as follows: Direct…

A: Relevant costs are the cost that can be affected by the decision. When a company decides to buy or…

Q: Alpha Company produces 1 000 units of Part X per month. The total manufacturing costs of the part…

A: In this question, we have to find out the effect on monthly operatin

Q: Zena Technology sells arc computer printers for $58 per unit. Unit product costs are: Zena…

A: Minimum Selling price per unit = Direct material + direct labor + (manufacturing overhead x 2/3) +…

Q: If the part is purchased, the space released can be rented for P65,000.  If the part is purchased,…

A: Given in the question: Total Cost to produce 15,000 units = P450,000 If purchased outside, The per…

Q: 37.50 15.00

A: Number of units=25000

Q: Aldean Company makes 100,000 units per year of a part called U67 for use in one of its products.…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: Han-3742 company manufactures 25,000 units of part T-25 each year. The company's cost per unit for…

A: In the given question, Relevant cost to Make will be compared with Relevant cost to Buy. If the…

Q: Swifty Corporation can produce 100 units of a necessary component part with the following costs:…

A: Introduction: Materials and supplies devoured during the manufacture of products that are typically…

Q: Harris Ltd also recently imported an artificial intelligent machinery and incurred the following…

A: Fixed assets: These are the assets which were used in the business for more than one year. These…

Q: 3. Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: Direct…

A: For accepting or rejecting a special offer, the decision based on variable costing method. Variable…

Q: Carver Company manufactures a component used in the production of one of its main products. The…

A: CONTRIBUTION is the difference between selling price and variable cost

Q: P3. (make or buy) Sam Company incurs the following costs in producing 10,000 covers. $20,000 Direct…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: U-RIDE, Inc. currently produces the electric engines that are used in golf carts made and sold by…

A: Facility-level depreciation and Annual facility-level utilities would not be considered for…

Q: Provide Answer

A: Step 1:Introduction to the Differential Cost:Differential Costs are the difference between the costs…

Q: the amount of the relevant costs that would be saved by using the released facilities in the…

A: Given in the question: Production (in Units) 20000 Cost per unit is as below:   Direct…

Q: W.T. Ginsburg Engine Company manufactures part ACT31107 used in several of its engine models.…

A: Variable cost Depends upon the production of goods or services that is increment of sales increases…

Q: WT. Ginsburg Engine Company manufactures part ACT31107 used in several of its engine models. Monthly…

A: Introduction: Operating income, also known as income from operations. It is calculated by deducting…

Q: Han Products manufactures 23.000 units of part S-6 each year for use on its production line. At this…

A: The relevant cost is the cost which differs between the two alternatives or is avoidable. If the…

Q: Every year Riverbed Industries manufactures 7,300 units of part 231 for use in its production cycle.…

A: A make or buy decision is the act of choosing between whether to produce in-house or purchase from…

Q: The Heart Co. has just completed a 4-year contract to which the following relate: Labor and…

A: As per IFRS 15, Revenue from contract with customer Total contract cost includes contract…

Q: Zion Manufacturing had always made its components in-house. However, Bryce Component Works had…

A: Make or Buy is the decision making technique which helps the entity to decide the best possible…

Q: Vaughn Manufacturing incurs the following costs to produce 10,400 units of a subcomponent: Cost…

A: Solution Production- Direct material  8736 Direct labor 11752 Variable overhead  13104…

Q: Supler Corporation produces a part used in the manufacture of one of its products. The unit product…

A: Material cost=8 Cost form outside=16 Savings due to purchase from outside=7(Direct…

Q: Pharoah Company must decide whether to make or buy some of its components. The costs of producing…

A: Incremental Analysis :— This analysis shows the comparison between two different alternatives.…

Q: Assume that total sales revenue for 2018 is projected to be $1081764. Assume also the following…

A: Net Marketing Contribution (NMC) is a metric used to assess the profitability of marketing…

Q: Comet, Inc. has been experiencing the following costs when it produces 12,000 units of a…

A: The question is related to make or buy the product from outside. If we have to choose amomgst the…

Q: XYZ Co. produces all the parts it uses to manufacture its products. The following costs per unit…

A: Incremental analysis is prepared based on concept of relevant cost. The incremental cost or benefits…

Q: Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit…

A: Direct Materials refers to the raw materials used to manufacture a product. Normally all the direct…

Q: San Pablo Machine Works had always made its components in-house. However, Silangan Company had…

A: Total purchase costs = purchase cost per unit x no. of units = 550*5300 units = 2915000

Q: The company uses the absorption costing system Required A) Calculate the cost of producing one unit.…

A: Cost of products 1) Direct materials = €900     Direct labour = €1000     Variable production OH =…