Frannie fans currently manufactures ceiling fans that include remotes to operate them. the current cost to manufacture 10,060 remotes is as follows:

cost
direct materials $ 65,390
direct labor $ 55,330
variable overhead $ 30,180
fixed overhead $ 50,300
total $ 201,200
frannie is approached by lincoln company which offers to make the remotes for $18 per unit.

required:

1. compute the difference in cost between making and buying the remotes if none of the fixed costs can be avoided. what is the change in net income?

2. compute the difference in cost between making and buying the remotes if $20,120 of the fixed costs can be avoided. what is the change in net income?

3. what is the change in net income if fixed cost of $20,120 can be avoided and frannie could rent out the factory space no longer in use for $20,120?

The cutting department of cassel company has the following production and cost data for july. production costs 1. transferred out 12,300 units. beginning work in process $0 2. started 3,900 units that are 60% materials 62,856 complete as to conversion labor 12,622 costs and 100% complete as manufacturing overhead 23,100 to materials at july 31. materials are entered at the beginning of the process. conversion costs are incurred uniformly during the process. determine the equivalent units of production for (1) materials and (2) conversion costs. materials conversion costs total equivalent units of production link to text link to text compute unit costs. (round unit costs to 2 decimal places, e.g. 2.25.) materials $ conversion costs $ link to text link to text prepare a cost reconciliation schedule. (round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.) cost reconciliation costs accounted for transferred out $ work in process, july 31 materials $ conversion costs total costs $

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: asset a e(ra) = 18.5% σa = 20% asset b e(rb) = 15% σb = 27% an investor with a risk aversion of a = 3 would find that on a risk-return basis. a. only asset a is acceptable b. only asset b is acceptable c. neither asset a nor asset b is acceptable d. both asset a and asset b are acceptable

Which of the following is not a characteristic of a weak economy? a. a low employment rateb. a high inflation ratec. a decreased gdpd. a high unemployment rate