Company A produces snowboards and currently incurs a fixed annual cost of $125,000 and has a variable cost of $0.90 per unit. The annual demand for snowboards is 160,000. Company B, also producing snowboards, has made a technological breakthrough in the snowboard finish application. Company B will apply the finish for $0.23 per unit in variable costs plus a fixed annual cost of $230,000. What will it cost/save company A to outsource the finishing process to company B

Why should managers invest any excess cash

Your uncle is considering investing in a new company that will produce high quality stereo speakers. the sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $75.00; and fixed costs are estimated at $1,200,000. what sales volume would be required to break even, i.e., to have ebit = zero?

On january 15, the end of the first biweekly pay period of the year, north company’s payroll register showed that its employees earned $32,000 of sales salaries. withholdings from the employees’ salaries include fica social security taxes at the rate of 6.2%, fica medicare taxes at the rate of 1.45%, $3,000 of federal income taxes, $772 of medical insurance deductions, and $260 of union dues. no employee earned > $7,000 in this first period. prepare the journal entry to record north company’s january 15 (employee) payroll expenses and liabilities.