Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. x company currently buys 8,000 units of a part eac

X Company currently buys 8,000 units of a part each year from a supplier for...

80.2K

Verified Solution

Question

Accounting

image

X Company currently buys 8,000 units of a part each year from a supplier for $8.00 per part, but it is considering making the part instead. It paid a consulting firm $16,000 to do the make/buy analysis. The consulting firm determined that X Company would have to buy equipment costing $150,000 to make the part. The equipment would last for six years, at which time it would have zero disposal value. The consulting company also estimated that it would cost X Company $36,310 a year to produce the 8,000 units. What is the approximate rate of return if X Company makes the part instead of buying it from the supplier? [Note: Submit 1% as .01, etc.] Submit Answer Tries 0/1

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

Physics
1.2K views

4 Four capacitors of each of capacity 3 F are connected as shown in the...

Physics
1.2K views

A large cylindrical container with open top contains a liquid upto height 2H 8m and...

Physics
1.2K views

A symmetrical square lamina of mass M has uniform semi circular plates attached to it...

Basic Math
1.2K views

For y x610x 3x find d5y 5 dx 0 d5y 5 dx

Basic Math
1.2K views

What is the relationship between multiplying polynomials and factoring How are these two concepts related...

Calculus
1.2K views

2 2 2 d

Accounting
1.2K views

Perpetual inventory using LIFO Assuming a perpetual inventory system and using the last-in, first-out (LIFO)...

Accounting
1.2K views

Required 1 Required 2 Required 3 Prepare the expected cash disbursements during August. TEJAS WINDOW...

Accounting
1.2K views

El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared...

Accounting
1.2K views

At the beginning of the year, the balance in the Allowance for Doubtful Accounts is...

Accounting
1.2K views

The financial statements of Friendly Fashions include the following selected data (in millions): ($ in...

Accounting
1.2K views

the gonzalez group issued $850,000 of 13% bonds on June 30, 2024, for $913,945. The...