Cost to make = 116,000+21,000+47,000+ 30,000 = 214,000
Cost to buy = 185,000 + (30,000-7,000) = 208,000
Therefore buy and save 6,000
Option A is the answer
Oriole's Manufacturing Company can make 100 units of a necessary component part with the following costs:...
Sheridan's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $112000 17000 39000 30000 If Sheridan's Manufacturing Company can purchase the component externally for $170000 and only $6000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Make and save $11000 Make and save $4000 Buy and save $4000 Buy and save $11000
Coronado’s Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $120000 Direct Labor 23000 Variable Overhead 54000 Fixed Overhead 30000 If Coronado’s Manufacturing Company can purchase the component externally for $195000 and only $7000 of the fixed costs can be avoided, what is the correct make-or-buy decision? a. Make and save $22000 b. Buy and save $9000 c. Buy and save $22000 d. Make and save $9000
Multiple Choice Question 99 Oriole's Manufacturing Company can make Direct Materials Direct Labor Variable Overhead Fixed Overhead 100 units of a necessary component part with the following costs $116000 21000 47000 30000 If Oriole's Manufacturing Company purchases the component externally, $20000 of the fixed costs can be avoided. What is the maximum amount Oriole is willing to pay to purchase the 100 units? $194000 O $214000
Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor $120,000 25,000 Variable Overhead 45,000 Fixed Overhead 30,000 If Tex's Manufacturing Company can purchase the component externally for $190,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Buy and save $5,000 Make and save $5,000 Make and save $15,000 Buy and save $15,000
Multiple Cholce Question 100 Marigold's Manufacturing Company can make 100 units of a necessary component part with the following costs Direct Materials $111000 Direct Labor 16000 Variable Overhead 17000 Fred Overhead 30000 If Marigold's Manufacturing Company can purchase the component externally for $165000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision? O Buy and save $8000 O Make and save $3000 O Buy and save $3000 O Make and save $3000 Click...
Marigold Corp. can produce 100 units of a component part with the following costs: Direct Materials $20000 Direct Labor 4500 Variable Overhead 18000 Fixed Overhead 11000 If Marigold Corp. can purchase the component part externally for $47000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision? a. Buy and save $2500 b. Make and save $500 c. Make and save $2500 d. Buy and save $4500
19. Marathon Manufacturing Company can make 10,000 units of a necessary component part with the following costs per unit: Direct Materials $15 Direct Labor Variable Overhead Fixed Overhead Product cost per unit $55 Marathon Manufacturing Company can purchase the component externally for $38 per unit. Only 25% of the total fixed costs can be avoided. What is the correct make-or-buy decision in order to maximize net income? a. Make and save $12,000 6 Buy and save $12,000 C. Make and...
Vaughn Manufacturing can produce 100 units of a component part with the following costs: Direct Materials $14000 Direct Labor 5500 Variable Overhead 9000 Fixed Overhead 11000 If Vaughn Manufacturing can purchase the component part externally for $35000 and only $4000 of the fixed costs can be avoided, what is the correct make- or-buy decision? Make and save $500 Buy and save $500 OMake and save $2500 Buy and save $6500 Sunland Music produces 60000 CDs on which to record music....
Coronado Industries can produce 100 units of a component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $11000 9500 10000 11000 If Coronado Industries can purchase the component part externally for $35000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Buy and save $4500 Make and save $2500 Make and save $500 Buy and save $2500
Park Industries can produce 100 units of a component part with the following costs: Direct Materials $12000 Direct Labor 3500 Variable Overhead 13000 Fixed Overhead 11000 If Park Industries can purchase the component part externally for $33000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision? A. Make and save $500 B. Make and save $2,500 C. Buy and save $4,500 D. Buy and save $2,500