A-6 Zion Manufacturing had always made its components in-house. However, Bryce Component Works had recently offered to supply one component, K2, at a price of $13each. Zion uses 4,100 units of Component K2 each year. The cost per unit of this component is as follows:Direct materialsDirect laborVariable overheadFixed overheadTotalRequired:MakeBuy$7.41The fixed overhead is an allocated expense; none of it would be eliminated if production of Component K2 stopped.Differential Cost to Make2.96$1.731. What are the alternatives facing Zion Manufacturing with respect to production of Component K2?Make the component in-house or to buy it from Bryce2. List the relevant costs for each alternative. If required, round your answers to the nearest cent.4.00$16.10Total Relevant Cost16.10 X per unit13.00per unit3.10 X per unitIf Zion decides to purchase the component from Bryce, by how much will operating income increase or decrease?Decrease12,510 X

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

Zion Manufacturing had always made its components in-house. However, Bryce Component Works had recently offered to supply one component, K2, at a price of $13 each. Zion uses 4,100 units of Component K2 each year. The cost per unit of this component is as follows: Direct materials Direct labor Variable overhead Fixed overhead Total Make Buy Differential Cost to Make $ $7.41 The fixed overhead is an allocated expense; none of it would be eliminated if production of Component K2 stopped. Required: 1. What are the alternatives facing Zion Manufacturing with respect to production of Component K2? Make the component in-house or to buy it from Bryce ✓ 2. List the relevant costs for each alternative. If required, round your answers to the nearest cent. 2.96 1.73 4.00 $16.10 13.00 Total Relevant Cost 16.10 X per unit ✓per unit 3.10 X per unit If Zion decides to purchase the component from Bryce, by how much will operating income increase or decrease? Decrease ✔ 12,510 X

Zion Manufacturing had always made its components in-house. However, Bryce Component Works had recently offered to supply one component, K2, at a price of $13 each. Zion uses 4,100 units of Component K2 each year. The cost per unit of this component is as follows: Direct materials Direct labor Variable overhead Fixed overhead Total Make Buy Differential Cost to Make $ $7.41 The fixed overhead is an allocated expense; none of it would be eliminated if production of Component K2 stopped. Required: 1. What are the alternatives facing Zion Manufacturing with respect to production of Component K2? Make the component in-house or to buy it from Bryce ✓ 2. List the relevant costs for each alternative. If required, round your answers to the nearest cent. 2.96 1.73 4.00 $16.10 13.00 Total Relevant Cost 16.10 X per unit ✓per unit 3.10 X per unit If Zion decides to purchase the component from Bryce, by how much will operating income increase or decrease? Decrease ✔ 12,510 X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 3: When is an employer NOT required to file a quarterly Form 941? Answer: А. O When annual tax liability for federal income, Social Security, and Medicare tax is less than $1,000 В. O When annual tax liability for federal income, Social Security, and Medicare tax is less than $1,500 С. O When annual tax liability for federal income, Social Security, and Medicare tax is less than $2,500 D. When annual tax liability for federal income, Social Security, and Medicare tax is less than $100,000
j 1 2 3 4 5 Pr 0.15 0.10 0.55 0.15 0.05 Return, r 20.00% 5.00% 0.00% - 5.00% - 10.00%
9. Joba Corporation issued $1,000,000 of 13% (stated rate) bonds payable on January 1, 2020, due on January 1, 2028, with interest payable each January 1. Investors require an effective-interest rate (market rate) of 10%. Calculate the amount of discount or premium that will be recognized when the company issues the bonds (indicate the amount and wither its discount or premium).
Now, assume that the state of the limit order book is as follows just before the call of CBA's opening call auction: Buy Quantity Price $8.08 $8.01 $7.99 $7.96 $7.91 $7.87 $7.84 $7.82 0 0 0 a. $7.96 O b. $8.01 O c. Other O d. $7.99 e. $7.91 1800 800 1100 1900 800 Sell Quantity 1600 1800 1200 0 0 0 0 If no more orders are entered, the call price would be:
Round 1.1235 to the nearest tenth. O 1.12 O 1.2 1.0 1.1