Per Unit | $ 65,000 | $ 195,000 | $ 225,000 | |
Manufactured | ||||
Direct Material | 10.5 | $ 682,500 | $ 2,047,500 | $ 2,362,500 |
Direct Labor (7.5*70%) | 5.25 | $ 341,250 | $ 1,023,750 | $ 1,181,250 |
Variable Overhead (1.50*70%) | 1.05 | $ 68,250 | $ 204,750 | $ 236,250 |
Fixed Company Overhead | $ 169,000 | $ 169,000 | $ 169,000 | |
Rent | $ 175,500 | $ 175,500 | $ 175,500 | |
Supervision Cost | $ 58,500 | $ 58,500 | $ 58,500 | |
Total Manufacturing Cost | $ 1,495,000 | $ 3,679,000 | $ 4,183,000 | |
Lees: Purchase price from Outsider | $ 1,170,000 | $ 3,510,000 | $ 4,050,000 | |
Advantage | $ 325,000 | $ 169,000 | $ 133,000 |
Per Unit | 65000 | 195000 | 225000 | |
Manufactured | ||||
Direct Material | 10.5 | =$B$3*C1 | =$B$3*D1 | =$B$3*E1 |
Direct Labor (7.5*70%) | =7.5*70% | =$B$4*C1 | =$B$4*D1 | =$B$4*E1 |
Variable Overhead (1.50*70%) | =1.5*70% | =$B$5*C1 | =$B$5*D1 | =$B$5*E1 |
Fixed Company Overhead | =2.6*65000 | =C6 | =D6 | |
Rent | 175500 | =C7 | =D7 | |
Supervision Cost | 58500 | =C8 | =D8 | |
Total Manufacturing Cost | =SUM(C3:C8) | =SUM(D3:D8) | =SUM(E3:E8) | |
Lees: Purchase price from Outsider | =C1*18 | =D1*18 | =E1*18 | |
Advantage | =C9-C10 | =D9-D10 | =E9-E10 |
"In my opinion, we ought to stop making our own drums and accept that outside supplier's...
"In my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. "At a price of $18 per drum, we would be paying $6.65 less than it costs us to manufacture the drums in our own plant. Since we use 65,000 drums a year, that would be an annual cost savings of $432,250." Antilles Refining's current cost to manufacture one drum is given below...
"In my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. "At a price of $21 per drum, we would be paying $7.05 less than it costs us to manufacture the drums in our own plant. Since we use 65,000 drums a year, that would be an annual cost savings of $458,250." Antilles Refining's current cost to manufacture one drum is given below...
"In my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. "At a price of $21 per drum, we would be paying $7.05 less than it costs us to manufacture the drums in our own plant. Since we use 65,000 drums a year, that would be an annual cost savings of $458,250." Antilles Refining's current cost to manufacture one drum is given below...
"In my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. "At a price of $20 per drum, we would be paying $4.25 less than it costs us to manufacture the drums in our own plant. Since we use 75,000 drums a year, that would be an annual cost savings of $318,750." Antilles Refining's current cost to manufacture one drum is given below...
"In my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. "At a price of $21 per drum, we would be paying $5.10 less than it costs us to manufacture the drums in our own plant. Since we use 65,000 drums a year, that would be an annual cost savings of $331,500." Antilles Refining's current cost to manufacture one drum is given below...
"In my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. "At a price of $21 per drum, we would be paying $4.85 less than it costs us to manufacture the drums in our own plant. Since we use 50,000 drums a year, that would be an annual cost savings of $242,500." Antilles Refining's current cost to manufacture one drum is given below...
"In my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. "At a price of $22 per drum, we would be paying $3.50 less than it costs us to manufacture the drums in our own plant. Since we use 95,000 drums a year, that would be an annual cost savings of $332,500." Antilles Refining's current cost to manufacture one drum is given below...
"In my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. "At a price of $22 per drum, we would be paying $3.50 less than it costs us to manufacture the drums in our own plant. Since we use 95,000 drums a year, that would be an annual cost savings of $332,500." Antilles Refining's current cost to manufacture one drum is given below...
"In my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. "At a price of $18 per drum, we would be paying $5 less than it costs us to manufacture the drums in our own plant. Since we use 60,000 drums a year, that would be an annual cost savings of $300,000." Antilles Refining's current cost to manufacture one drum is given below...
Please answer all of them "In my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. "At a price of $18 per drum, we would be paying $6.65 less than it costs us to manufacture the drums in our own plant. Since we use 65,000 drums a year, that would be an annual cost savings of $432,250." Antilles Refining's current cost to manufacture...