A jalapeno canning company is faced with a make/buy decision. Cardboard shipping cartons can be purchased for $0.60 each or made in-house. If manufactured, two machines will be required. Machine X will cost $20,000 and have a life of 6 years with a $2,000 salvage value. Machine Y will cost $11,000 and have a life of 4 years with no salvage value. The annual maintenance cost for machines X and Y are $6,000 and $5,000 per year, respectively. A total of 4 operators will be required for the two machines at a rate of $22.50 per hour per person. In a normal 8-hour day, the 4 operators and two machines can produce 1,000 cartons.
The variable cost per carton associated with the in-house option is closest to:
A. $0.0625
B. $0.10
C. $0.72
D. $0.81
E. $0.92
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A jalapeno canning company is faced with a make/buy decision. Cardboard shipping cartons can be purchased for $0.60 each or made in-house. ...” 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
Galt Industries has 50 million shares outstanding and a market capitalization of $1.25 billion. It also has $750 million in debt outstanding.
Answers (1)
Which of the following are properties of a savings account? Select all that apply. A person can access the money at any time. There is a lower earning potential. They are short term. Risk is involved.
Answers (2)
18. When a borrower defaults on the payment requirements of a loan, there are several options that the lender has.
Answers (1)
jennifer has the transactions below, what is the combined impact on her net worth when considering all of the transactions? She purchases $5,000 worth of a mutual fund with cash from her savings account.
Answers (1)
In the securitization process, A. security investors make loans to banks, who in turn make loans to households. B. banks grant loans to households and bundle the loans into securities that are then sold to investors. C.
Answers (1)
New Questions in Business
Which term best describes an opening at least 30 inches high and 18 inches wide in any wall or partition through which persons may fall? A. Floor opening B. Portable ladder C. Wall opening D. Fixed industrial stairs
Answers (1)
What should a supervisor do when employee behavior does not automatically produce feedback? train the employee to monitor his/her own behavior and provide self feedback modify the task so that feedback is automatic provide systematic observation
Answers (1)
Your parents surprise you with a $500 check. As a result, the U. S. GDP decreases because you have to pay taxes on this income. increases because this is unexpected income to you. remains unchanged because it was counted when your parents earned it.
Answers (1)
Motorcycle Manufacturers, Inc., projected sales of 57,400 machines for the year. The estimated January 1 inventory is 6,890 units, and the desired December 31 inventory is 7,240 units. The budgeted production for the year is?
Answers (1)
ewok enterprises recently elected the fair value option to account for its investment in yoda inc. ewok purchased the shares for 21000 and the shares are currently trading for 190000 at year end.
Answers (1)