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NEW QUESTION: 1
A company manufactures a product that is sold for US $37.95. It uses an absorption-cost system. Plant capacity is 750,000 units annually, but normal volume is 500,000 units. Costs at normal volume are given below.

Fixed manufacturing overhead is budgeted at US $4.5 million. A customer has offered to purchase 100,000 units at US $25.00 each to be packaged in large cartons, not the normal individual containers. It will pick up the units in its own trucks. Thus, variable selling and administrative expenses will decrease by 60%. The company should compare the total revenue to be derived from this order with the total relevant costs of:
A. U S $3,150,000
B. U S $1,880,000
C. U S $1.830,000
D. U S $2,930,000
Answer: C
Explanation:
The necessary assumptions are that all fixed costs and the unit variable costs of direct materials, direct labor, and variable manufacturing overhead are not affected by the special order. Hence, the fixed costs are not relevant. The unit costs of direct materials and direct labor are given as US $9.80 and US $4.50, respectively. The unit variable manufacturing overhead cost is US $3.00 [ $6,000,000 total manufacturing overhead -$4,500,000 total fixed manufacturing overhead) 500,000 units normal volume]. The unit variable selling and administrative cost is US $1.00 [$2.50 x 1.0 - .6)]. Consequently, the total relevant cost of the special order is US $1,830,000 [100,000 units x $9.80 + $4.50 +$3.00 + $1.00)]. A manufacturing company is considering a new product for the coming year, which is an electric motor the company can purchase from a reliable vendor for US $21.00 per unit. The alternative is to manufacture the motor internally. The company has excess capacity to manufacture the 30,000 motors needed in the coming year except for manufacturing space and special machinery. The machinery can be leased for US $45,000 annually. Finished goods warehouse space adjoining the main manufacturing facility, leased for US $39,000 annually, can be converted and used to manufacture the motors. Additional off-site space can be leased at an annual cost of US $54,000 to replace the finished goods warehouse. The estimated unit costs for manufacturing the motors internally, exclusive of the leasing costs itemized above, are:

NEW QUESTION: 2
By default, what is a relay's secondary relay, if not otherwise defined?
A. The main IBM Tivoli Endpoint Manager (TEM) server
B. Its_BESCIient_Relay_NameOverride relay setting
C. The next closest relay as defined by the network hop count
D. A random TEM client on the same subnet
Answer: A

NEW QUESTION: 3
Which of the following best describes TOGAF?
A. An abstract framework for the development of standards and processes for a business architecture
B. A process model, best practices and assets to aid production, use and maintenance of enterprise architectures
C. A reference model containing taxonomy defining terminology for an enterprise architecture, together with an associated graphic
D. A collection of components organized to accomplish a specific set of functions
E. A system development lifecycle method for software engineering
Answer: B

NEW QUESTION: 4
What are three enhancements to conventional Ethernet and needed for Converged Enhanced Ethernet? (Choose three.)
A. Data Center Bridging exchange Protocol (DCBX)
B. Priority-based Flow Control (PFC)
C. Spanning Tree Protocol (STP)
D. Ethernet Link Aggregation (LAG)
E. Enhanced Transmission Selection (ETS)
Answer: B,D,E