Streamtech, a manufacturer of automobiles, recently received a patent for an unmanned search boat. By doing this, Streamtech has ________
A) created an entry barrier
B) introduced product differentiation
C) locked in its suppliers
D) reduced the cost of operations
B
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Melita Sailboats Company manufactures 100 luxury yachts per month
A compact media center is included in each yacht. Melita Sailboats manufactures the media center in-house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $280, and the fixed costs are $40,000 per month. If it outsources the media centers, fixed costs could be reduced by half, and the vacant facilities could be rented out to earn $4,000 per month of rental income. At what contract cost would outsourcing pay off for Melita? A) $520 per unit B) $480 per unit C) $280 per unit D) $400 per unit
The purpose of this college is to provide a quality education to all who apply. This is an example of a:
a. goal b. objective c. direction d. mission statement e. laissez-faire direction
The management of Krach Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 10,000 machine-hours. Capacity is 12,000 machine-hours and the actual level of activity for the year is assumed to be 9,500 machine-hours. All of the manufacturing overhead is fixed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $12,000 per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for the year as well as the
manufacturing overhead at capacity. It is further assumed that this is also the actual amount of manufacturing overhead for the year. If the company bases its predetermined overhead rate on capacity, what would be the cost of unused capacity reported on the income statement prepared for internal management purposes? A. $1,900 B. $2,500 C. $600 D. $2,000
Carver Corporation produces a product which sells for $40. Variable manufacturing costs are $18 per unit. Fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. A selling commission of 15% of the selling price is paid on each unit sold. The contribution margin per unit is:
A. $16 B. $22 C. $7 D. $17