Brio Motors Company produces a part that is used in the manufacture of one of its products
The unit manufacturing costs of this part, assuming a production level of 6,000 units, are as follows:
Direct materials $5
Direct labor (variable cost) 6
Variable manufacturing overhead 3
Fixed manufacturing overhead 4
Total cost $18
Finn Motors Company has offered to sell 6,000 units of the same part to Brio for $17.50 per unit. Assuming the company has no other use for its facilities and that the fixed manufacturing costs are unavoidable, what should Brio do?
What will be an ideal response
Produce in-house .Direct material $5.00
Direct labor 6.00
Variable manufacturing overhead 3.00
Total variable manufacturing cost $14.00
Cost per unit if outsourced 17.50
Loss per unit if outsourced $(3.50 )
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A $49,000, three-month, 12% note payable was issued on December 1, 2017. What is the amount of accrued interest on December 31, 2017?
A) $490 B) $708 C) $354 D) $823
Good ways to convince a large retailer to take a chance on your product include all but:
a. Show them solid sales figures from your direct marketing efforts b. Sell through an e-tailer first to establish your sales numbers c. Offer to sell it on consignment d. All of the following will work