Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the golden valley corporation produces an executiv

The Golden Valley Corporation produces an executive jet for which it currently manufactures a fuel...

80.2K

Verified Solution

Question

Accounting

image

The Golden Valley Corporation produces an executive jet for which it currently manufactures a fuel valve; the cost of the valve is indicated below: Cost per Unit Variable costs Direct material Direct labor Variable overhead Total variable costs Fixed costs Depreciation of equipment Depreciation of building Supervisory salaries Total fixed costs Total cost $948 713 287 $1,948 516 218 288 1,022 $2,970 The company has an offer from Duvall Valves to produce the part for $2,049 per unit and supply 1,030 valves (the number needed in the coming year). If the company accepts this offer and shuts down production of valves, production workers and supervisors will be reassigned to other areas where, unfortunately, they really are not needed. The equipment cannot be used elsewhere in the company, and it has no market value. However, the space occupied by the production of the valve can be used by another production group that is currently leasing space for $54,020 per year Should the company make or buy the valve? cost Y otal incremental of buying valves is ...........!. The company should make the valves

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

Biology
1.2K views

Identify three perceptual factors that affect Egypt's regionalization. These are the ways that people think...

Geometry
1.2K views

If sewage passes through the connector hole so that half of the volume contains sewage...

Basic Math
1.2K views

State the poles of the rational function below4s +9/2s - 18

Algebra
1.2K views

Which of the following statements is are correct a C d e If the side...

Algebra
1.2K views

Review What is the equation of the following parabola in vertex for 4 3 2...

Accounting
1.2K views

Please do a variance analysis for below :- Try to break out the strategic profitability...

Accounting
1.2K views

Write a paragraph to summarize the results of the bond amortization schedule and...

Accounting
1.2K views

neque TOLIUTI [The following information applies to the questions displayed below) Marcelino Co.'s March 31...

Accounting
1.2K views

The Flying Weinberg make skateboards of many types, from beginners to experts. They do custom...

Accounting
1.2K views

On January 1, 2016, Hebron Company issued a $175,000, five-year, 8% installment note to Ventsam...

Accounting
1.2K views

[The following information applies to the questions displayed below.] The City of...

Accounting
1.2K views

Question 2 [20 points] The account balances for the noncash current assets and current liabilities...