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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Would the speed of sound in a monatomic gas like helium be the same as it...

Physics
Q

Provide the Director of Operations with a memo presenting a short diagnosis of the recent problems...

Operations Management
Q

Sydney was a newly hired project manager at a consulting firm. She has previous experience working...

General Management
Q

Insert one comme to separate the coordinate adjectives The Great Barrier Reef the largest coral...

Biology
Q

Complete the equations to prove that vertical angles always have equal measure M N In...

Geometry
Q

n 1 5 Completely simplify each radical expression 500 2 6 75 GEOMETRY Unit 7...

Geometry
Q

Write true or false for the statement.{b, h, j, k} = {j, k, h, b}Choose...

Basic Math
Q

Translate each sentence using the following translation key Bob is gathering eggs Question 5 Cv...

Statistics
Q

nitial Knowledge Check ose that the relation T is defined as T 2 6 7...

Calculus
Q

Questions 1 and 2 refer to the following information The following information is for direct...

Accounting
Q

Question 5) Consider the process introduced in Question-4. You are provided with additional information: The...

Accounting
Q

Exercise 15-4 (Algo) Prepare a Statement of Cash Flows [LO15-1, LO15-2] The following changes took...

Accounting