Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ten spot company manufactures 40,000 components p

Ten Spot Company manufactures 40,000 components per year.  The manufacturing cost of the components was determined...

60.1K

Verified Solution

Question

Accounting

Ten Spot Company manufactures 40,000 components per year.  The manufacturing cost of the components was determined as follows:

Direct materials — $75,000
Direct labour — 120,000
Variable manufacturing overhead — 45,000
Fixed manufacturing overhead — 60,000
Total — $300,000

An outside supplier has offered to sell the component for $12. 75.

Refer to Ten Spot Company. What would be the effect on income if the company purchases the component from the outside supplier?


Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

Assume a normal distribution for each question. (a) What proportion of the distribution consists of z-scores greater...

Statistics
1.2K views

Amount spent # of students cumulative frequency 1 -10 3 3 11-20 7 10 21-30 9 19 31-40 11 41-50 8 51-60 2 (a) complete the table to show the cumulative frequency (b) using...

Psychology
1.2K views

Distinguishing Deductive and Inductive Reasoning Some of the following passages are best viewed as attempted deductive arguments,...

Biology
1.2K views

Female Drosophila fruit flies deposit mRNA coding for Bicoid protein at the anterior head and...

Statistics
1.2K views

A computer password consists of fifteen characters. Replications are allowed.

Algebra
1.2K views

Factor Answer x 11x 24 2

Accounting
1.2K views

A Corporation has two manufacturing departments-Machining and Finishing. The compary used...

Accounting
1.2K views

North Wind Aviation received its charter during January authorizing the following capital stock: Prefered stock:...

Accounting
1.2K views

Financial Statement Reporting for a Finance Lease Reynolds Construction (RC) needs a piece of equipment...

Accounting
1.2K views

4.2 Bug-Off Exterminators provides pest control services...

Accounting
1.2K views

answer all questions please Required information Andy, Jim and Dwight are...

Accounting
1.2K views

The management of Kunkel Company is considering the purchase of a $25,000 machine that would...