Ask Question
BusinessBusiness
17 January, 09:08

Marigold Corp. can produce 100 units of a component part with the following costs:

Direct Materials $21000

Direct Labor 5500

Variable Overhead 19000

Fixed Overhead 11000

If Marigold Corp. can purchase the units externally for $50000, by what amount will its total costs change?

A. An increase of S4500

B. An increase of $50000

C. An increase of $15S00

D. A decrease of $11000

+3
Answers (1)
  1. 17 January, 09:10
    0
    A. An increase of $4,500

    Explanation:

    For computing the total cost change, first we have to determine the total cost which is shown below

    = Direct Materials cost + Direct Labor costs + variable overhead costs

    = $21,000 + $5,500 + $19,000

    = $45,500

    And, the outside purchase is $50,000

    So, the total cost change would be

    = $50,000 - $45,500

    = $4,500 increase
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Marigold Corp. can produce 100 units of a component part with the following costs: Direct Materials $21000 Direct Labor 5500 Variable ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Problem 13-3 A large bakery buys flour in 25-pound bags. The bakery uses an average of 1,215 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $10 per order. Annual carrying costs are $75 per bag. a.
Answers (1)
What do you think are factors that influence whether someone purchases a product or not?
Answers (1)
Which of the following is a characteristic protected by anti-discrimination laws?
Answers (2)
When supply is > demand for a business is: a. High profit b. Customer dissatisfaction impact c. Ideal d. Wasteful/Costly
Answers (1)
True or false: Net profit tells a business how much profit they have earned.
Answers (2)
New Questions in Business
Montana Company was authorized to issue 200,000 shares of common stock. The company had issued 50,000 shares of stock when it purchased 10,000 shares of treasury stock.
Answers (1)
The following items caused the only differences between pretax financial income and taxable income. 1.
Answers (1)
Which of the following characteristics would lead the auditor to assess control risk at a higher level? a. It is difficult for the auditor to determine or gain access to the organization or individuals who own and/or control the entity. b.
Answers (1)
The reason for the Fed being set up as an independent agency of government is to:
Answers (1)
Headings in reports that describe the content of the section and may even give a conclusion about the section are called:
Answers (1)
Home » Business » Marigold Corp. can produce 100 units of a component part with the following costs: Direct Materials $21000 Direct Labor 5500 Variable Overhead 19000 Fixed Overhead 11000 If Marigold Corp.
Sign Up Forgot Password?