Question

Required: 1. Assuming that 65,000 drums are needed each year, what is the financial advantage (disadvantage) of buying the dr
Check my we In my opinion, we ought to stop making our own drums and accept that outside suppliers offer. said Wim Niewind
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solution $10.70 $6.65 $1.05 Analysis of cost: Direct Material cost per drum Direct labor cost per drum ($9.50 x (1-0.3)) VariRequired 3.: Computation of financial advantage (disadvantage) if 130,000 drums needed We shall prepare the differential anal

Add a comment
Know the answer?
Add Answer to:
Required: 1. Assuming that 65,000 drums are needed each year, what is the financial advantage (disadvantage)...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • “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 $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...

    "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...

    "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...

  • Please answer all of them "In my opinion, we ought to stop making our own drums...

    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...

  • "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...

  • Check my work "In my opinion, we ought to stop making our own drums and accept...

    Check my work "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...

  • "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...

    “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...

    “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 $4.45 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 $289,250.” 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...

    "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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT