Msi is considering outsourcing the production of the handheld control module used with some of its products. the company has received a bid from monte legend co. (mlc) to produce 11,000 units of the module per year for $17.00 each. the following information pertains to msi’s production of the control modules: direct materials $ 8 direct labor 4 variable manufacturing overhead 4 fixed manufacturing overhead 8 total cost per unit $ 24 msi has determined that it could eliminate all variable costs if the control modules were produced externally, but none of the fixed overhead is avoidable. at this time, msi has no specific use in mind for the space that is currently dedicated to the control module production. required: 1. compute the difference in cost between making and buying the control module. 2. should msi buy the modules from mlc or continue to make them? 3-a. suppose that the msi space currently used for the modules could be utilized by a new product line that would generate $41,000 in annual profit. recompute the difference in cost between making and buying under this scenario. 3-b. does this change your recommendation to msi?

Answers

Answer 1

Msi should continue to make  control module because buying the control module will result into incremental cost of $11,000 to the msi.

Differential analysis

1. Differential analysis

Buy control module (Alt 1) or Make control module (Alt 2)

 Buy control module       Make control module   Differential effect on cost

                    (Alt 1)                      (Alternative 2)                   (Alternative 2)

Purchase price $187,000                   -                                     ($187,000)

(11,000×$17)

Direct materials  $0                        $88,000                              $88,000

(11,000×$8)

Direct labor         $0                        $44,000                              $44,000

(11,000×$4)

Variable  overhead $0                    $44,000                              $44,000

(11,000×$4)

Fixed overhead $44,000                 $44,000                                $0

(11,000×$8)

Total cost  $231,000                          $220,000                           ($11,000)

Difference in cost $11,000

2. Based on the above differential anaylsis msi should continue to make  control module reason being that buying the control module will result into incremental cost of $11,000 to the msi.

3a. Differential analysis

Buy control module (Alt 1) or Make control module (Alt 2)

 Buy control module       Make control module   Differential effect on cost

                   (Alt 1)                      (Alternative 2)                   (Alternative 2)

Purchase price  $187,000                   -                                     ($187,000)

(11,000×$17)

Direct materials    $0                        $88,000                              $88,000

(11,000×$8)

Direct labor           $0                        $44,000                              $44,000

(11,000×$4)

Variable  overhead $0                    $44,000                              $44,000

(11,000×$4)

Fixed overhead  $44,000                 $44,000                                $0

(11,000×$8)

Less profit from new product line

                 ($41,000)                              $0                                     $41,000

Total cost $190,000                          $220,000                           $30,000

Difference in cost $30,000

3b. Based on the above differential anaylsis msi should buy the control module reason being that buying the control module will result into incremental savings of $30,000 to the msi. The recommendation to msi is changed based on the new scenario.

Inconclusion Msi should continue to make  control module because buying the control module will result into incremental cost of $11,000 to the msi.

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Related Questions

For a business, income remaining after payment of expenses is:
о
A. loss.
o B. capital.
O C. profit.
D. debt.

Answers

Answer:

The answer should be C. Profit

Explanation:

That is the total money they get after everything is payed for and restocked.

-Hope This Helps.

Justin

The target audience for an advertising campaign is the Group of answer choices people toward whom the advertisements are directed. sales objective to be achieved by the campaign. overall goal of the advertising campaign. geographic distribution of persons. information base on which to develop the campaign.

Answers

The target audience for an advertising campaign is people toward whom the advertisements are directed.

What is advertising campaign?

Advertising campaign refers to serious of product related activities designed to get the attention of customers.

Indidviduals and companies advertise in oder to increase awareness about their products and then sell them afterwards.

Hence, the target audience for an advertising campaign is choices people toward whom the advertisements are directed.

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John and Vicky purchased a $200,000 homeowners policy for their house in 1988. They have renewed the policy each year since, but have not updated their coverage. This policy has a $1,000 deductible. Their home now has a replacement value of $275,000. Last week they came home to find a small fire which caused the following damages: home$50,000 personal property$20,000 landscaping$ 7,000How much will the insurance company pay for the $50,000 loss to their home

Answers

The amount that the insurance company pay for the $50,000 loss to their home will be $25000.

What is an insurance?

It should be noted that insurance simply means a form of protection against financial loss to hedge against risk.

From the information given, there is a 50% on the personal property covered. In this case, the amount will be:

= 50% × $50000

= $25000

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Two members of the team Katya was managing were at odds over whose job it was to collect water samples and whose job it was analyze them for pollutants. Katya resolved the issue by assigning one team member to do the collecting and another to do the analyzing. In this example, which conflict-handling style did Katya use

Answers

The style used by Katya to resolved the issue is Dominating conflict-handling style

What is Dominating conflict-handling style ?

A dominating style serves as a style which is characterized by high concern for self and low concern for others.

Therefore, this style is known to be a win-lose perspective or with forcing with behavior style.

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A company’s _____ specifies the media vehicles to be used and the schedule for running advertisements.

Answers

The factor that specifies the media vehicles and methods to be used by a company to run advertisements is it's media plan.

What is a media plan?

This refers to a structured plan that a company comes up with and implements in order to meet their marketing goals.

It involves things like the schedules of adverts to be run, the media vehicles to be engaged, and the type of content that would be most effective.

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When an industry is a natural monopoly, a. it is characterized by constant returns to scale. b. it is characterized by diseconomies of scale. c. a larger number of firms may lead to a lower average cost.

Answers

When an industry is a natural monopoly, A. it is characterized by constant returns to scale.


What is a natural monopoly?

A natural monopoly arises from high start-up costs or long economies of scale, and barriers to entry.

A natural monopoly is known for these characteristics:

It is naturally occurring.It has extraordinarily large fixed costs.The marginal costs are low.It has powerful economies of scale.Competition is Undesirable.

Thus, when an industry is a natural monopoly, A. it is characterized by constant returns to scale.

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A bill that deals with such a diverse set of unrelated issues as environmental issues, tax issues, and criminal justice issues is likely to be a(n)

Answers

A bill that deals with such a diverse set of unrelated issues as environmental issues, tax issues, and criminal justice issues is likely to be an Omnibus bill

What is an Omnibus Bill?

An omnibus bill is a bill that covers divers issues which is coupled into one document.

It is a single document which is accepted in a single vote by a legislature but encompasses several measures into one or combines diverse subjects.

Due to their large size and scope, omnibus bills limit opportunities for debate and scrutiny.

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In the trucking industry, demand for fuel remains relatively stable even in times when the price of fuel increases, indicating that demand for fuel in this segment is:.

Answers

Answer:

inelastic

Explanation:

Question 5 of 10 The tax rate. percentage paid on income taxes is called the marginal O A fixed O B. incremental O C. total O D. average SUBMIT​

Answers

The answer would be C

Answer:

Its not D

Explanation:

I got it wrong :((

The difference between stocks and bonds in terms of the future payments that they are expected to make is multiple choice 1 stocks pay fixed dividends, wheras bonds pay a variable amount of interest at regular intervals. Bonds pay dividends out of profits, whereas stocks pay a predetermined amount of interest at regular intervals. Bonds pay fixed dividends out of revenues, whereas stocks pay a variable amount of interest at regular intervals. Stocks pay dividends out of profits, whereas bonds pay a predetermined amount of interest at regular intervals

Answers

The difference is that stocks pay dividends out of profits while bonds pay a predetermined amount of interest at regular intervals.

What is a stock and bonds?

Stock means the shares owned in a business and bonds means an isused debt that promises to repay at some point in the future.

Hence, the difference is that stocks pay dividends out of profits while bonds pay a predetermined amount of interest at regular intervals.

Thereforem the Option B is correct

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A decrease in consumer confidence can put your job at risk if Group of answer choices aggregate expenditures fall. consumers expect their incomes to rise in the future. aggregate expenditures rise. consumers expect firms to increase investment in the future.

Answers

A decrease in consumer confidence can put your job at risk if consumers expect their incomes to rise in the future.

What is consumer confidence?

consumer confidence serves as an economic indicator which measures the degree of optimism as regards the consumers and overall state of a country's economy.

Therefore, consumer confidence can your job at risk if consumers expect their incomes to rise in the future and it doesn't rise.

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When you buy Crest toothpaste at your local supermarket because you have a 50-cents-off coupon for it, even though that is not your regular brand, you are being influenced primarily by which promotional element

Answers

Sales promotion is a promotional element that makes you buy Crest toothpaste at your local supermarket because you have a 50-cents-off coupon.

What is sales promotion?

A sales promotion is a strategy used to market products in a business, the business make of campaign as a medium of attracting individual who are potential customers.

This helps increase the demand for a particular products.

Therefore, Sales promotion is a promotional element that makes you buy Crest toothpaste at your local supermarket because you have a 50-cents-off.

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How might advertising reduce economic well-being? alternatively, how might advertising actually increase economic well-being?.

Answers

Advertising your business can be quite costly so for start up businesses this can be hard to finance. This can reduce the business’ economic well being. Alternatively, if you advertise your business well that can bring in a whole new range of customers and their money. So this would increase your business’ economic well being

Keith has set up a new burger joint in his locality. He is planning on introducing craft beers and milkshakes to the existing menu. Thus, the customers who visit his joint will have a range of options to choose from. This scenario exemplifies ________.

Answers

An identification of substitutes is done by Keith as he introducing new items to the existing menu so that customer will have ranges to choode from.

What is an identification of substitutes?

This is a process whereby a seller plans to add some product that serves as subtitutes tp existing product.

Therefore, the identifying  of substitutes is done by Keith as he introducing new items to the existing menu.

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Which of the following best describes the purpose of making an investment?
O A. To have control over economic activity
B. To increase profits by paying higher wages
O c. To use money to make more money
O D. To keep the money supply growing

Answers

Answer:

C. to use money to make more money

Explanation:

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Economists have determined that the economy goes through a cycle of
growth and decline how often?
O A. Every 80-95 years
O B. Every 6-10 years
O C. Every 25-31 years
O D. Every 54-60 years

Answers

Economists have determined that the economy goes through a cycle of growth and decline Every 25-31 years. Thus the correct option is C.

What is the economy?

The economy of any country is determined by the ratio of production and consumption that takes place within a year and evaluates the flow of funds in the market by analyzing the purchasing parity of an individual.

The economic cycle is ditributed into four stages in which there are stages as expansion, peak, contraction, and trough which indicate the status of the economy in the country.

According to economists, the economy has cycles of expansion and falls every 25–31 years. This is dependent on both the development of technology and the rise in the income of an individual.

Therefore, option C Every 25-31 years is appropriate.

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enter information into accounting system means​

Answers

Answer:

Answer:

Explanation:

These are the sales, cash receipts, cash disbursements, and purchases journals.

proceduresintegratedproceduresintegratedAnswerAnAnswerAn accounting system is a set of accounting processes with integrated procedures and controls. The intent of an accounting system is to record business transactions, summarize those transactions into an aggregated form, and create reports that can be used by decision makers to monitor, analyze, and improve operations.AnswerAnAnswerAnswerAnswer:

Explanation:

A prime example of a Special Economic Zone, located adjacent to Hong Kong, is the city of Group of answer choices Guangzhou Beijing Shenzhen Chengdu Shanghai

Answers

The city of Shenzhen is a prime example of a Special Economic Zone that is located adjacent to Hong Kong,

What is a Special Economic Zone?

These are zones that serves as an area of business and trade which are different from the rest of the country.

Some other examples of a Special Economic Zones includes Shannon Airport in Ireland, Dubai South in UAE, Xiamen in China etc

Therefore, the Option C is correct.

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1. Jared is campaigning to become president of the United States. Along his career path, Jared served as the governor of California and, before that, the mayor of Long Beach.
• Which pathway(s) in the Government & Public Administration sector might fit Jared’s career path?
• Explain how the two roles Jared has already performed could be cited to prove his qualification for the role of president. Do some research on Jared’s careers if needed.

Answers

1# Jared was first mayor of a city then governor of a state. So, now he can run for President of United States

2# careers in Governance pathway are designed or serve different interest groups

3# Friendly and good communication skills

4# School Principal and business administration

5# good listener and comfortable with taking on intimate aspects of patient care

!!!! DO NOT COPY !!!!!!!

Use as an example or put it in your own words. Here is what I did.

What is the name of the document which establishes the processes for selling stock, should the need arise

Answers

The name of the document which establishes the processes for selling stock, should the need arise is a Prospectus

What is a prospectus?

A prospectus is a formal document that is required by and filed with the Securities and Exchange Commission (SEC) that gives explicit details about an investment offering to the public.

This document is very useful to investors because it provides and insight of the risks involved with investing in the security or fund.

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If the U.S. imports $500 billion worth of goods and services from China and sells $200 billion worth of goods and services, then the U.S. is running a

Answers

If the U.S. imports $500 billion from China and sells $200 billion worth of goods and services, then the U.S. is running a trade deficit.

What is a trade deficit?

The trade deficit arises when the net exports are negative instead of positive.

A trade deficit describes the balance of trade, which is the difference between the monetary value of the United State's exports and imports over a certain period.


Thus, if the U.S. imports $500 billion from China and sells $200 billion worth of goods and services, then the U.S. is running a trade deficit.

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Because a majority of small business are rejected for traditional business loans, many ______ for short-term financing.

Answers

As a result of them being rejected for traditional loans, most small businesses end up applying for short-term financing.

Why do small businesses apply for short-term financing?

Small businesses are considered risky by institutions who offer traditional business loans to the point where most of them are rejected.

As a result, they are forced to turn to short-term financing which comes with high rates and are therefore more expensive to obtain.

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Answer: Use credit cards

Explanation:

Which database can be used on a desktop computer?
an online dictionary
an online shoe company that has seven hundred fifty thousand customers
the mailing information of the 432 voters in a city council member’s district
the online banking information of the customers of a national bank


The answer is a

Answers

the answer is (A.)- an online dictionary

We have discussed at least two reasons for banks to exist, both of which imply that banks are somehow special, or perform a unique function for the rest of the financial society/world. Explain, in detail, the rationales developed by Fama, and by Diamond in their ground breaking papers. The best answers will quote extensively from the papers.

Answers

The reasons for banks to exist according to Fama is that offer interests to customers and financial advice.

What is a bank?

It should be noted that a bank simply means a financial institution that accepts deposit from the public.

In this case, banks are somehow special, or perform a unique function for the rest of the financial world. The reasons for banks to exist according to Fama is that offer interests to customers and financial advice.

They also lend money to firms and keep money safe for the customers.

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What does meeting minutes mean?

Answers

Answer:

Minutes, also known as minutes of meeting, protocols or, informally, notes, are the instant written record of a meeting or hearing

Explanation:

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There are seven different kinds of kitchen scales available, each of which operates on a slightly different principle for calculation.

True

False

Answers

There are Seven different types of Kitchen Scales. They are,

1. Balance Scale

2. Mechanical Scale

3. Digital Scale

What is a Kitchen Scale?

A kitchen scale is a weight machine that lets a person quantify the weight of a certain product.

4. Large Capacity Scale

5. Hanging Scale

Analog Hanging ScaleDigital Hanging Scale

6. Top loading Dial Scales

7. Metric System Scale

The various kitchen scales are used by people for measuring and weighing the products. There are digital as well as analog scales which are used by the users based on their preferences for calculations.

The given statement is True.

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[Quality of Services Marketing]
1. Which of the following is an example of a B2B internet service? [Answer: Tech Support]
2. Many companies have sophisticated tracking software [Answer: Critical incident technique]
3. Which of the following is not a characteristic of a service? [Answer: Reliability]
4. What is the encounter between service-consumer that occurs during delivery of the service is known as? [Answer: Experince qualities]
5. Your local credit union offers a variety of services to its members [Answer: Fresh-baked cookies and gourmet cookies]
6. The measure of the difference between a customer's expectation [Answer: Gap analysis]
7. Shepherd University is launching new services to attract more students [Answer: Bachelor's degrees]
8. A large store that sells groceries also has a large pharmaceuticals section with a 24-hour pharmacy. [Answer: Offering free coffee tastings]
9. John always takes his car to the same place for an oil change. [Answer: Augmented]
10. Which of the following is not a service of quality attribute? [Answer: Response qualities]
- You can thank me by thanking my previous answers, would be very appreciated -

Answers

All of your answers are correct.

The questions given and their appropriate responses can be seen below:

1. Tech Support is an example of a B2B internet service.

2. Many companies have sophisticated tracking software - Critical incident technique.

3. Reliability is not a characteristic of a service.

4.  Experience qualities is the encounter between service-consumer that occurs during delivery of the service

5. Your local credit union offers a variety of services to its members such as Fresh-baked cookies and gourmet cookies.

6. Gap analysis is the measure of the difference between a customer's expectation.

7. Shepherd University is launching new services such as Bachelor's degrees to attract more students.

8. Offering free coffee tastings is a large store that sells groceries also has a large pharmaceuticals section with a 24-hour pharmacy.

9. John always takes his car to the same place for an oil change - Augmented

10. Response qualities is not a service of quality attribute.

What is Service marketing?

This is defined as  the marketing that businesses that provide a service to their customers use to increase brand awareness and sales.

The answers to the questions given  can be seen appropriately given above.

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Steve silversmith produces unique and exclusive sterling silver rings, pendants, buckles, and chains. steve pays one supervisor to oversee the work performed by several part-time silversmiths. he pays each silversmith to work 20 hours per week or 40 hours week, depending on production demand. he also hires a jewelry expert to perform quality assurance inspections and pays her based on the weight (per ounce of silver) of each piece inspected. the controller and the sales manager are discussing potential price increases due to the increasing cost of silver and increases in other costs.


required:

the following are several costs they are discussing. indicate whether each cost is a variable, fixed, step, or mixed cost within steveâs relevant range of activity.


a. depreciation on production equiepment

b. supervisor salary

c. packaging (each piece is packaged in a designer cartoon)

d. silver

e. part-time labor (silversmith)

f. production facility utilities

g. quality assurance

h. mortgage on the production facility

Answers

The answer with be a

On January 1, Forward Company issues bonds that have a $27,000 par value, mature in 6 years, and pay 10% interest per year. Interest payments are paid to bondholders semiannually on June 30 and December 31. How much interest does Forward Company pay to bondholders every six months if the bonds are sold at par

Answers

The amount of interest that Forward Company pays to bondholders every six months if the bonds are sold at par is $1,350.

What is bond interest?

The bond interest is the finance expense that Forward Company, the issuer of the bonds, pays to bondholders periodically.

It is computed as the Face value multiplied by the interest rate multiplied by 1/2 if interest is paid semi-annually.

See detailed calculations below.

Data and Calculations:

Face or par value of bonds = $27,000

Interest rate = 10%

Maturity period = 6 yars

Interest payment = semiannually

Interest per semi-annual = $1,350 ($27,000 x 10% x 1/2)

Thus, the amount of interest that Forward Company pays to bondholders every six months if the bonds are sold at par is $1,350.

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If the Fed wants to increase the money supply through open market operations, it will Group of answer choices purchase government securities. lend more reserves to commercial banks. first purchase, then sell, government securities. sell government securities.

Answers

If the feds want to increase the money supply in the economy they would:  purchase government securities.

How does the fed raise money supply?

The federal reserve of the United States is known to raise its money supply when they purchase securities.

They do this by using newly created money and also lowering the interest rate that is in the economy.

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