Variable costs saved by purchasing the part from outside = 45000*(5+11+4) = | $ 9,00,000 |
Savings in fixed costs = 45000*9.9*1/3 = | $ 1,48,500 |
Rental income from facilities | $ 96,000 |
Purchase cost = 45000*26.50 = | $ -11,92,500 |
Net dollar disadvantage | $ -48,000 |
Han Products manufactures 45,000 units of part 5-6 each year for use on its production line....
Han Products manufactures 45,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-5 is as follows: Direct materials Direct labour Variable overhead Fixed overhead $ 5.00 11.00 4.00 9.90 Total cost per part $29.90 An outside supplier has offered to sell 45,000 units of part S-6 each year to Han Products for $26.50 per part. If Han Products accepts this offer, the facilities now being...
Han Products manufactures 45,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows. Direct materials Direct labour Variable overhead Fixed overhead $ 5.00 11.00 400 9.90 Total cost per part $29.90 An outside supplier has offered to sell 45,000 units of part S-6 each year to Han Products for $26.50 per part. If Han Products accepts this offer, the facilities now being...
Han Products manufactures 28,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.60 11.00 2.40 6.00 $ 23.00 An outside supplier has offered to sell 28,000 units of part S-6 each year to Han Products for $21 per part. If Han Products accepts this offer, the facilities now...
Han Products manufactures 52,500 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows: Direct matenals Direct labour Variable overhead Fixed overhead $ 5.75 11.75 4.75 10.35 Total cost per part $32.60 An outside supplier has offered to sell 52,500 units of part S-6 each year to Han Products for $28.75 per part. If Han Products accepts this offer the facilities now being...
Han
Products manufactures 34,000 units of part S-6 each year for use on
its production line. At this level of activity, the cost per unit
for part S-6 is:
Han Products manufactures 34,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part 5-6 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.80 11.00 2.20 6.00 $23.00 An outside...
Han Products manufactures 38,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.10 10.00 2.90 9.00 $ 25.00 An outside supplier has offered to sell 38,000 units of part S-6 each year to Han Products for $21 per part. If Han Products accepts this offer, the facilities now...
Han Products manufactures 35,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.90 12.00 2.10 9.00 $ 27.00 An outside supplier has offered to sell 35,000 units of part S-6 each year to Han Products for $23 per part. If Han Products accepts this offer, the facilities now...
Han Products manufactures 26,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 4.00 9.00 2.00 9.00 $ 24.00 An outside supplier has offered to sell 26,000 units of part S-6 each year to Han Products for $20 per part. If Han Products accepts this offer, the facilities now...
Han Products manufactures 30,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part 5-6 is: $ Direet materiala Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part 3.60 10.00 2.40 $ 25.00 An outside supplier has offered to sell 30,000 units of part 5-6 each year to Han Products for $21 per part. If Han Products accepts this offer, the facilities now being...
Han Products manufactures 36,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 4.00 8.00 2.00 9.00 $ 23.00 An outside supplier has offered to sell 36,000 units of part 5-6 each year to Han Products for $19 per part. If Han Products accepts this offer, the facilities now...