Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis. Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost. Requirement-1: To calculate: Find Difference between in the cost between making and buying?

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Answer 1

Question

Chapter 7, Problem 6E

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-1:

To calculate:

Find Difference between in the cost between making and buying?

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-2:

To calculate:

Should we buy the product or make them.

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-2:

To identify:

If Company making profit of $35000 currently then your advice changes or not?

Expert Solution & Answer

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Everest manufacturing reported the following information regarding the materials required to manufacture its product during the current month:

Answer 2

Question

Chapter 7, Problem 6E

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-1:

To calculate:

Find Difference between in the cost between making and buying?

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-2:

To calculate:

Should we buy the product or make them.

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-2:

To identify:

If Company making profit of $35000 currently then your advice changes or not?

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 7, Problem 6E

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-1:

To calculate:

Find Difference between in the cost between making and buying?

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-2:

To calculate:

Should we buy the product or make them.

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-2:

To identify:

If Company making profit of $35000 currently then your advice changes or not?

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 7, Problem 6E

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-1:

To calculate:

Find Difference between in the cost between making and buying?

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-2:

To calculate:

Should we buy the product or make them.

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-2:

To identify:

If Company making profit of $35000 currently then your advice changes or not?

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 7, Problem 6E

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-1:

To calculate:

Find Difference between in the cost between making and buying?

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-2:

To calculate:

Should we buy the product or make them.

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-2:

To identify:

If Company making profit of $35000 currently then your advice changes or not?

Answer 6

Chapter 7, Problem 6E

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-1:

To calculate:

Find Difference between in the cost between making and buying?

Answer 7

Chapter 7, Problem 6E

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-1:

To calculate:

Find Difference between in the cost between making and buying?

Answer 8

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-2:

To calculate:

Should we buy the product or make them.

Answer 9

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-2:

To calculate:

Should we buy the product or make them.

Answer 10

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-2:

To identify:

If Company making profit of $35000 currently then your advice changes or not?

Answer 11

To determine

Concept introduction:

Variable Cost: Those cost which are increases as the output of the product is increases are called variable cost and it remains same on per unit basis.

Fixed Cost: All those cost which are same in totality and incurred to the company irrespective of the output then it is called fixed cost.

Requirement-2:

To identify:

If Company making profit of $35000 currently then your advice changes or not?

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 7 - Briefly describe the five steps of the management...Ch. 7 - Suppose you are considering a part-time job to...Ch. 7 - Prob. 3Q Ch. 7 - What are criteria for a cost to be considered...Ch. 7 - Prob. 5Q Ch. 7 - Explain opportunity cost and list two opportunity...Ch. 7 - Why should opportunity costs be factored into the...Ch. 7 - Explain excess capacity and full capacity. Include...Ch. 7 - How e the concepts of full capacity and...Ch. 7 - Prob. 10Q

Solution Summary: The author explains the difference between variable cost and fixed cost. Variable cost increases as the output of the product increases.

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