Taylor manufactures 12,000 units of a part used in its production to manufacture guitars. The annual production activities related to this part are as follows: Direct materials, $24,000 Direct labor, $60,000 Variable overhead, $54,000 Fixed overhead, $84,000 Best Guitars, Inc, has offered to sell 12,000 units of the same part to Taylor for $22 per unit. If Taylor were to accept the offer, some of
the facilities presently used to manufacture the part could be rented to a third party at an annual rental of $18,000 . Moreover, $4 per unit of the fixed overhead applied to the part would be totally eliminated. What should Taylor's decision be, and what is the total cost savings that would result?
a. Make, $60,000
b. Buy, $60,000
c. Make, $78,000
d. Buy, $78,000
A
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What is one manner in which new technologies have affected public relations practice?
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Under the Magnuson-Moss Warranty Act, a seller who offers a written warranty on goods must provide a full warranty
a. True b. False Indicate whether the statement is true or false
A corporation recently purchased some preferred stock that has a before-tax yield of 6.50%. The company has a tax rate of 38%. What is the after-tax return on the preferred stock? Assume a 70% dividend exclusion for tax on dividends. (Round your final answer to two decimal places.)
A. 5.87% B. 5.76% C. 6.05% D. 6.68% E. 6.85%