Please provide explanation.
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Homework Answers
Correct answer---------Make for a saving of $1 per unit
Working
| Total Cost of Buying | $ 22 |
| Total Cost of manufacturing | $ 21 |
| Financial advantage of making | $ 1 |
The variable cost of manufacturing will be considered for this decision making because fixed cost will incur whether goods are manufactured or purchased. In other words fixed cost is irrelevant since it will be same in both alternatives.
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Please provide explanation.
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Please provide detailed explanation. Thank you! Take/Reject a Special Order A company can manufacture a part...
Please provide detailed explanation. Thank you!
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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...
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Please provide detailed explanation. Thank you!
Take/Reject a Special Order A company can manufacture a part for $25 per unit, which includes direct materials of $9, direct labor of $6, variable manufacturing overhead of $3, and fixed manufacturing overhead of $7. Productive capacity is 30,000 units annually. The normal sales price is $36 per unit and the company is selling 23,000 units at that price. A foreign buyer offers to buy 2,000 units at $20 per unit. Accepting the order...
roblem 4 (10 points) harp Image Company makes a part used in the manufacture of video cameras. Management is considering whether to continue manufacturing the part.or to buy the part from an outside source a cost of $21.30 per part. Sharp Image needs 100,000 parts per year. The cost of manufacturing 100.000 parts is computed as follows: $ 765,000 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs 612,000 510,000 663,000 $2,550,000 Sharp Image would pay...
Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 33,000 parts is $105,000, which includes fixed costs of $50,000 and variable costs of $55,000. The company can buy the part from an outside supplier for $1 per unit and avoid 30% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $15,000. If Voltaic outsources, what...
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 43,000 parts is $140,000, which includes fixed costs of 560,000 and variable costs of $71,000 The company can buy the part from an outside Supplier for $3 60 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...
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 40,000 parts is $143,000, which includes fixed costs of $70,000 and variable costs of $73,000. The company can buy the part from an outside supplier for $3.70 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...
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...
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...
Make-or-Buy, Traditional Analysis Wehner Company is currently manufacturing Part ABS-43, producing 54,600 units annually. The part is used in the production of several products made by Wehner. The cost per unit for ABS-43 is as follows Direct materials Direct labor Variable overhead Fixed overhead $42.10 9.00 3.30 3.65 $58.05 Total Of the total fixed overhead assigned to ABS-43, $13,049 is direct fixed overhead (the annual lease cost of machinery used to manufacture Part ABS-43), and the remainder is common fixed...
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