The church averages about 5 wedding parties a month that pay rent of 200 per

The church averages about 5 wedding parties a month

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wedding parties. The church averages about 5 wedding parties a month that pay rent of $200 per party. Utilities are normally $1,000 per month. With the homeless shelter, the utilities will increase to $1,300 per month. Required: What is the opportunity cost to the church of operating a homeless shelter in the church?
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Exercises The Nature of Costs 07.02.2020 3 6. Make or Buy A company needs 10,000 units of a component used in producing one of its products. The latest internal accounting reports show that the per unit manufacturing cost to be $150.00, variable manufacturing costs of $110.00 and fixed manufacturing cost of $40. The company recently received an offer from another manufacturer to produce the component for $144.00. If it buys the component on the outside 40% of the fixed manufacturing cost can be avoided. Required: a. If the company buys the component from the outside supplier at $144.00, what is the impact on income? b. What price would make the company indifferent between making the component internally and having the outside supplier make it?
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  • Fall '18
  • Stahl Inc

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