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Question 6 (4 points) Max Company uses 20,000 units of Part A in producing its products....
Waterway Industries uses 20000 units of Part A in producing its products. A supplier offers to...
Waterway Industries uses 20000 units of Part A in producing its products. A supplier offers to make Part A for $7. Max Company has relevant costs of $10 a unit to manufacture Part A. If there is excess capacity, the opportunity cost of not buying Part A from the supplier is
Question Help Harvey Automobiles uses a standard part in the manufacture of several of its trucks....
Question Help Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 60,000 parts is $140,000, which includes fued costs of $50,000 and variable costs of $90,000 The company can buy the part from an outside supplier for $3.50 per unit, and avoid 30% of the fixed costs. Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be...
Gilberto Company currently manufactures 89.000 units per year of one of its crucial parts. Variable costs...
Gilberto Company currently manufactures 89.000 units per year of one of its crucial parts. Variable costs are $3.15 per unit, fixed costs related to making this part are $99.000 per year, and allocated fixed costs are $86,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $4.35 per unit guaranteed for a three-year period Calculate the total incremental cost of...
Gilberto Company currently manufactures 80,000 units per year of one of its crucial parts. Variable costs...
Gilberto Company currently manufactures 80,000 units per year of one of its crucial parts. Variable costs are $1.50 per unit, fixed costs related to making this part are $80,000 per year, and allocated fixed costs are $40,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.30 per unit guaranteed for a three-year period. Calculate the total incremental cost of...
Gilberto Company currently manufactures 88,000 units per year of one of its crucial parts. Variable costs are $3.10 per...
Gilberto Company currently manufactures 88,000 units per year of one of its crucial parts. Variable costs are $3.10 per unit, fixed costs related to making this part are $98,000 per year, and allocated fixed costs are $85,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $4.30 per unit guaranteed for a three-year period. Calculate the total incremental cost of...
Check my work Exercise 23-1 Make or buy LO P1 4 points Gilberto Company currently manufactures...
Check my work Exercise 23-1 Make or buy LO P1 4 points Gilberto Company currently manufactures 84,000 units per year of one of its crucial parts. Variable costs are $2.90 per unit, fixed costs related to making this part are $94,000 per year, and allocated fixed costs are $81,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $4.10 per...
Gilberto Company currently manufactures 80.000 units per year of one of its crucial parts. Variable costs...
Gilberto Company currently manufactures 80.000 units per year of one of its crucial parts. Variable costs are $2.70 per unit, fixed costs related to making this part are $90,000 per year, and allocated fixed costs are $77,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.90 per unit guaranteed for a three-year period Calculate the total incremental cost of...
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The...
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 40,000 parts is $140,000, which includes forced costs of $72.000 and variable costs of $60,000. The company can buy the part from an outside supplier for $4.00 per unit, and avoid 30% of the food costs Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold...
Rutro Corp. makes 59,000 units per year of a part it uses in the products it...
Rutro Corp. makes 59,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct material $21.00 Direct labor 23.00 Variable manufacturing overhead 8.00 Fixed manufacturing overhead 30.00 Unit product cost $82.00 An outside supplier has offered to sell the company all of the 59,000 parts it needs for $75.00 a unit. If the company accepts this offer, the facilities now being used to make the...
Exercise 23-4 Make or buy decision LO A1 Gilberto Company currently manufactures 60,000 units per year...
Exercise 23-4 Make or buy decision LO A1 Gilberto Company currently manufactures 60,000 units per year of one of its crucial parts. Variable costs are $160 per unit foxed costs related to making this part are $60,000 per year, and allocated fixed costs are $30,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $280 per unit guaranteed for a...
Question Help Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 60,000 parts is $140,000, which includes fued costs of $50,000 and variable costs of $90,000 The company can buy the part from an outside supplier for $3.50 per unit, and avoid 30% of the fixed costs. Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be...
Gilberto Company currently manufactures 89.000 units per year of one of its crucial parts. Variable costs are $3.15 per unit, fixed costs related to making this part are $99.000 per year, and allocated fixed costs are $86,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $4.35 per unit guaranteed for a three-year period Calculate the total incremental cost of...
Gilberto Company currently manufactures 80,000 units per year of one of its crucial parts. Variable costs are $1.50 per unit, fixed costs related to making this part are $80,000 per year, and allocated fixed costs are $40,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.30 per unit guaranteed for a three-year period. Calculate the total incremental cost of...
Gilberto Company currently manufactures 88,000 units per year of one of its crucial parts. Variable costs are $3.10 per unit, fixed costs related to making this part are $98,000 per year, and allocated fixed costs are $85,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $4.30 per unit guaranteed for a three-year period. Calculate the total incremental cost of...
Check my work Exercise 23-1 Make or buy LO P1 4 points Gilberto Company currently manufactures 84,000 units per year of one of its crucial parts. Variable costs are $2.90 per unit, fixed costs related to making this part are $94,000 per year, and allocated fixed costs are $81,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $4.10 per...
Gilberto Company currently manufactures 80.000 units per year of one of its crucial parts. Variable costs are $2.70 per unit, fixed costs related to making this part are $90,000 per year, and allocated fixed costs are $77,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.90 per unit guaranteed for a three-year period Calculate the total incremental cost of...
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 40,000 parts is $140,000, which includes forced costs of $72.000 and variable costs of $60,000. The company can buy the part from an outside supplier for $4.00 per unit, and avoid 30% of the food costs Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold...
Exercise 23-4 Make or buy decision LO A1 Gilberto Company currently manufactures 60,000 units per year of one of its crucial parts. Variable costs are $160 per unit foxed costs related to making this part are $60,000 per year, and allocated fixed costs are $30,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $280 per unit guaranteed for a...
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