Could I get this with the formulas as well?
Statement showing the Relevant cost of Manufacturing
Particulers Wheels Seats Calipers Total
Direct Materials 141000 53000 90500 284500
Direct Labor 94000 73000 41500 208500
Variable over head 21000 14000 16000 51000
Fixed overhead 59800 40200 29600 129600
Total Cost of Manufacturing 315800 180200 177600 673600
Statement showing relevant cost of outsourcing
No of units per year (A) 40000 20000 80000 140000
Purchase price per unit (B) 6.96 7.82 2.56
Branding cost per unit (c) 0.50 0.50 -
Total purchase price (A*B) (D) 278400 156400 204800 639600
Total Branding cost (A*C) (E) 20000 10000 0 30000
Fixed Cost =Total Fixed cost (100%-75%) (F) 14950 10050 7400 32400
Total cost of outsourcing (D+E+F) 313350 176450 212200 702000
Savings/Loss(Cost of Mfg-Cost of outsourcing) 2450 3750 -34600 -28400
Explanations:
if three products are outsourced, wheels and seats are resulting in to savings whereas the calipers is resulting into loss.
moreover total cost if outsourced three products is resulting in to increase of 28400.
Calculation of total cost if wheels is Manufactures and seats and calipers are outsourced
Total Manufacturing cost of Wheels 315800
Cost of purchase of seats (20000*7.82) 156400
Cost of Branding of seats(20000*0.50) 10000
Cost of purchase of calipers (80000*2.56) 204800
Total Cost 687000
Less: Lease income of Space 6000
Cost 681000
Total cost if Manufacture all three internally 673600
Net increase in Cost 7400
Therefore it is advisable to Manufacturing all the three products internally instead of outsourcing partially or fully which are generating losses.
Could I get this with the formulas as well? Instructions Enter your name and Access ID...
You are a financial manager for Zoom Corp., which manufactures bicycles. In the most recent fiscal year, Zoom manufactured and sold 20,000 bicycles. Wheels, seats, and brake calipers are three components of the bicycles currently manufactured by Zoom. Three different vendors have proposed to provide those components to Zoom, and quoted prices (including shipping) for their delivery. Your task is to determine which, if any, of these proposals should be accepted. Prepare a make vs. buy incremental analysis for each...
This is a major project so please show all formulas/work on Excel. Thank you so much! Instructions Enter your name and Access ID (aa1234' format) in the cells above. The data required for this case will not appear until you do so. You are a financial manager for Zoom Corp., which manufactures bicycles. In the most recent fiscal year, Zoom manufactured and sold 20,000 bicycles. Wheels, seats, and brake calipers are three components of the bicycles currently manufactured by Zoom....
You are a financial manager for Zoom Corp., which manufactures bicycles. In the most recent fiscal year, Zoom manufactured and sold 20,000 bicycles. Wheels, seats, and brake calipers are three components of the bicycles currently manufactured by Zoom. Three different vendors have proposed to provide those components to Zoom, and quoted prices (including shipping) for their delivery. Your task is to determine which, if any, of these proposals should be accepted. Prepare a make vs. buy incremental analysis for each...
You are a financial manager for Zoom Corp., which manufactures bicycles. In the most recent fiscal year, Zoom manufactured and sold 20,000 bicycles. Wheels, seats, and brake calipers are three components of the bicycles currently manufactured by Zoom. Three different vendors have proposed to provide those components to Zoom, and quoted prices (including shipping) for their delivery. Your task is to determine which, if any, of these proposals should be accepted. Prepare a make vs. buy incremental analysis for each...
Case1: Incremental Analysis: you are a financial manager for Zoom Corp., which manufactures bicycles. In the most recent fiscal year, 8 >> 10 >> 11 12 13 14 7 Instructions Enter your name and Access ID ('aa1234' format) in the cells above. The data required for this case 9 will not appear until you do so. You are a financial manager for Zoom Corp., which manufactures bicycles. In the most recent fiscal year, Zoom manufactured and sold 20,000 bicycles. Wheels,...
10 >> SIM You are a financial manager for Zoom Corp., which manufactures bicycles. In the most recent fiscal year, Zoom manufactured and sold 20,000 bicycles. Wheels, seats, and brake calipers are three components of the bicycles currently manufactured by Zoom. Three different vendors have proposed to provide those components to Zoom, and quoted prices (including shipping) for their delivery. Your task is to determine which, if any, of these proposals should be accepted. Prepare a make vs. buy incremental...
Prepare a make vs. buy incremental analysis for each possible course of action in an Excel worksheet. Your grade will be based on the correctness of your answers, as well as the use of Excel. That is, where possible, you should use formulas to get your answers, rather than keyed-in values. See your instructor for help with Excel basics if you need it. Below is cost data for Zoom's production of wheels, seats, and calipers. Outside suppliers have offered to...
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