The sp corporation makes 40,000 motors to be used in the production of its sewing machines. the average cost per motor at this level of activity is:

direct materials $ 9.90
direct labor $ 8.90
variable manufacturing overhead $ 3.65
fixed manufacturing overhead $ 4.60
an outside supplier recently began producing a comparable motor that could be used in the sewing machine. the price offered to sp corporation for this motor is $25.15. if sp corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. direct labor is a variable cost in this company. the annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be:

multiple choice

($76,000)

$254,000

108,000

$184,000

Answer the following questions with true or false and provide a brief explanation (2- 3 sentences) a) economies of scale in production give rise to multi-product firms. b) ace hardware corporation is an example of economies of scale in production.

Identify the accounting assumption or principle that is described below. (a) select the accounting assumption or principle is the rationale for why plant assets are not reported at liquidation value. (note: do not use the historical cost principle.) (b) select the accounting assumption or principle indicates that personal and business record-keeping should be separately maintained. (c) select the accounting assumption or principle assumes that the dollar is the "measuring stick" used to report on financial performance. (d) select the accounting assumption or principle separates financial information into time periods for reporting purposes. (e) select the accounting assumption or principle measurement basis used when a reliable estimate of fair value is not available. (f) select the accounting assumption or principle dictates that companies should disclose all circumstances and events that make a difference to financial statement users.

What is the difference between the contractual interest rate and the market interest rate?