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

An upward shift in the consumption function, other things being equal, could be caused by households: a. becoming pessimistic about the state of the economy. b. becoming optimistic about the state of the economy. c. expecting future income and wealth to decline. d. experiencing a tax increase.

Answers

Sometimes, when there is an optimistism on an economy from the households, this could cause an upward shift in the consumption function,

What causes upward shift in the consumption function?

Where there is a significant positive returns in the stock market that can increase consumer wealth this could cause the autonomous consumption to increase.

Hence, if there is an optimistism from households, this could cause an upward shift in the consumption function as well.

Therefore, the Option B is correct.

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at what stage of the product life cycle would it be best to begin investing in research and development of the next product?

Answers

Answer: Maturity

Explanation: This is before the product completley declines so you haven’t run out of time completley to develop a new and good quality product. It also isn’t too soon after the original product as that would cause problems in customer interest and make advertising/marketing more difficult.

How many gallons of oil does the us have in reserve.

Answers

Probaly around 138 gallons in total

Answer:

43.8 billion barrels

Explanation:

T_
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intensive and mundane tasks.

Answers

Answer:

Yes.robotics and automation are increasingly used in the travel and tourism industry of handle labour intensive and mundane tasks

Imagine that you are reading one of your favorite magazines. If you see a logo and recognize the brand as it is being presented to you, this is an example of Blank______.

Answers

When reading a magazine, seeing a logo and recognizing a particular brand, corresponds to an example of assisted recall.

What is assisted recall?

It is an aided brand recognition technique, that is, it can also be performed as a market research technique where consumers are encouraged to respond about their knowledge of a brand.

Therefore, assisted recall can demonstrate the ability of a brand to be easily recognized and identified through its characteristics, such as colors, logo and design.

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Answer: It is aided recall.

The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines Group of answer choices tactile communication. integrated marketing communications. proxemic communication. communication. kinesic communication.

Answers

The coordination of promotion  for maximum informational and persuasive impact defines: Integrated marketing communications.

What is Integrated marketing communications?

Integrated marketing communications can be defined as the way in which brands or product  promotional activities are effectively managed and coordinated.

This promotional activities includes:

Sales promotionBrands promotionMedia advertisementDirect marketing etc

Therefore the coordination of promotion  for maximum informational and persuasive impact defines: Integrated marketing communications.

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At the end of 20 years, an initial investment of $10,000 grows to $51,551.70. Use the continuous compounding formula to determine the annual rate of return. Write your answer in decimal form rounded to three decimal places. Do NOT convert your answer to a percentage.

Answers

Answer:

6

Explanation:

The annual rate of retutn is 0.823.

What is compoud interest?

The mathematical formula for calculating compound hobby, A=P(1+r/n)^nt.Compound interest genuinely approach earning hobby in our savings, and also, in the end, at the hobby that those savings earn.continuously compounded interest way that an account stability is continuously incomes hobby, in addition to refeeding that interest lower back into the balance so that it, too, earns.

continuous compounding is similar in idea to annual compounding, besides the compounding intervals are infinitely small. even though the yearly compounding system can be without difficulty changed to accommodate smaller durations.

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To ensure efficient clear communication ics requires the use of:.

Answers

Answer:

ICS requires the use of common terminology, meaning standard titles for facilities and positions within the organization.

Explanation:

Grants are typically awarded based on

Answers

Answer:

Grants are awarded based on Demonstrated Financial Need. Demonstarted Financial Need is based on the cost to attend college as well as how much the family will contribute.

__________________________________________________________

Questions?

Ask in the comments box.

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Answers

Based on the beginning and ending Work in Process and the units completed, the Units started in August must be 12,000 tons.

What amount of units were started in August?

This can be found by the formula:

= Units completed during August + Work in process Agust 31 - Work in process August 1

Solving gives:

= 19,000 + 2,000 - 9,000

= 21,000 - 9,000

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For a business, income remaining after payment of expenses is:
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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

BP ignored some safety regulations in order save $1 Million per day on the Horizon Deep Water Drilling Platform. How much did those violations end up costing the company

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Ignoring some safety regulations in order save $1 Million per day. The amount that  those violations end up costing the company is $100 Billion.

What is safety regulation?

Safety regulation can be defined as a set of rules and regulation that an employees are mandated to follow so as to prevent work hazard.

Based on the given scenario ignoring the safety regulation so as to save $1 million per day  will cost the company $100 Billion.

Which is why companies made it compulsory for employees to follow the saftey standard set so as to ensures that employees work in a safe and conducive environment .

Inconclusion the amount that  those violations end up costing the company is $100 Billion.

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The Trading Depot has $1,000 face value bonds outstanding with a market price of $980. The bonds pay interest annually, mature in 8 years, and have a yield to maturity of 7.339 percent. What is the current yield

Answers

Based on the face value of the bond and the market price as well as the yield to maturity, the current yield is 7.14%.

What is the current yield on this bond?

First find the coupon rate. You can do this by using a Spreadsheet and the PMT function.

Rate = 7.339%

Nper = 8 years

PV = -980

FV = 1,000

The coupon is $70 when rounded off. In percentage this is:

= 70 / 1,000 x 100%

= 7%

The current yield is found as:

= Coupon rate x Par value / Current price

= 7% x 1,000 / 980

= 7.14%

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Use the calculator to complete the following
conjectures about determinants
Matrix Calculator
Change A
Change
BV
If any row of a matrix contains all zeroes the
determinant is equal to
DONE
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L
[
]
[
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Result
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Intro

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Answer:

0

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1

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Answers

A SWOT analysis identifies threats and opportunities in the external environment as well as organizational strengths and weaknesses .

What is a SWOT analysis?

This is a study that an organization or a corporation would engage in just so theyt can identify their strengths as well as their weaknesses.

This is a strategic planning and management strategy that organizations use.

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A supporter of free-market policies would argue that the passage didn't liberalize the Chinese economy because only fourteen cities were opened for foreign investment and trade.

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Here, the prices for goods and services in a free market economy are self-regulated by buyers and sellers without any external interference.

Hence, a supporter of free-market policies would argue that the passage didn't liberalize the Chinese economy because only fourteen cities were opened for foreign investment and trade.

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Answers

Answer:

Examples of common customer service problems?

1] Long Wait on Hold

2] Unavailable or Out of Stock Product

3] Repeating the Customer's Problem

3] Uninterested Service Rep

5] Poor Product or Service

6] No First Call Resolution

7] Lack of Follow Up

8] New Product or Feature Request.

This are the examples

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If you were to make $9.00 per hour and worked 36 hours over the past two weeks, what would your gross income be on your paycheck?

Answers

Assuming  you were to make $9.00 per hour .What your gross income will be on your paycheck is $648.

Gross income

Using this formula

Gross income=Earning per hour×Numbers of hours worked×Number of weeks

Where:

Earning per hour=$9.00 per hour

Numbers of hours worked=36 hours

Number of weeks=2 weeks

Let plug in the formula

Gross income=$9.00 per hour×36 hours×2

Gross income=$648

Inconclusion  your gross income will be on your paycheck is $648.

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True or false
In the case of a work team, individual efforts result in a level of performance greater than the sum of those individual inputs.
True

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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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Answer:

a cist works in the pharmacy

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Answers

If the supplier perceives a buyer-supplier relationship,but there are problems, the supplier is most likely to: share information to find a mutual solution.

What is a buyer supplier relationship?

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Pete is seeking money from a venture capital firm by meeting with a group of professional investors to raise funds for his new legal research technology company, Techlaw Pros.

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Venture capital firm is a private equity investor that gives the capital to those companies who have high growth and in return for an equity stake in the company.

It give preference to the startup companies or the small companies that wants to diversify their business.

Hence, Pete is seeking money from a venture capital firm by meeting with a group of professional investors to raise funds for his new legal research technology company, Techlaw Pros.

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Answer:

just in time logistics

Explanation:

Quizlet

who buys and sells stocks on the exchange

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Answer:

i do

Explanation:

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Managers should perform a individual assessment to determine which employees require training.

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Answers

The Garnishment is a disposal institution that obtains money from a person's paycheck to cover outstanding debts.

What is Garnishment?

Garnishment is a legal process that allows a plaintiff to collect a monetary judgment from a defendant.

Garnishment allows the plaintiff to take the money or property of the debtor from the person or entity who possesses it.

It is a financial system that moves money from a individual's paycheck to pay off obligations.

Therefore, option B is correct.

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It should be noted that vertical integration simply means the process of acquiring business operations towards identical production.

In this case, the difficulty level that a manufacturer experiences in getting retailers to purchase its products is determined by the degree to which the channel is vertically integrated.

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If an insurer is incorporated in Rhode Island, but primarily does business in New York, what type of insurer is this considered in New York

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If an insurer is incorporated in Rhode Island, but primarily does business in New York. This is called foreign insurer.

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An insurer can be defined as a person who  insured a person or a person who provide insurance coverage.

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Inconclusion this is called foreign insurer.

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Price matching and Shipping directly are trends office supplies and Best Buy offers, which can compete with ratailers online who sells similar products.

What is marketing?

Marketing refers to the process of getting people interested in a company's product or service. It is a process a company undertakes to promote the buying or selling of a product or service.

The essence is to create awareness of the product to potential buyers so that they can purchase the products.

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