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Describe the Benefits and Drawbacks of GPK, RCA [1 Point] Q2. Nasser, Inc. makes electronic chips for smartphone manufacturers. The normal selling...
Q3. Abdullah Motors manufactures cars and currently uses only 50% of its manufacturing facility (20,000 cars). The company could utilize more of its facility by producing its own tires and using the total capacity. It currently purchases tires at $30 per unit. Abdullah would incur $12 per unit for direct materials, $10 for direct labor, and $24 for overhead (which is 30% variable) if it produces the tires.
a. Should Abdullah Motors make or buy the tires? Provide calculations that support your answer.[1 Point]
b. Suppose Abdullah Motors could rent the unused portion of its plant and receive $1,500 a month. Should the company make or buy the tires? Provide calculations that support your answer[1 Point]
c. List two qualitative factors that could affect this decision.[1 Point]
Q4.International Rental Cars incurred the following costs in a recent fiscal period:
Custodial services for branch office in St. Louis 250
Painting costs for luxury sports cars 320
Salaries for corporate accountants 395
Generalized advertising for the firm 460
Depreciation on home office computer equipment 665
Office equipment depreciation for Pasadena branch 775
Market research with business travelers 860
Total $3,725
Calculate the total cost in each of the following categories:
a. Organization-sustaining activities [0.5 Point]
b. Facility-sustaining activities [0.5 Point]
c. Customer-sustaining activities [0.5 Point]
d. Product-sustaining activities [0.5 Point]
