Smith has the following outsourcing data: Inside VC/Unit: 25 Inside Fixed Costs: 198,000 Outside VC/Unit: 34...

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Smith has the following outsourcing data: Inside VC/Unit: 25 Inside Fixed Costs: 198,000 Outside VC/Unit: 34...

Smith has the following outsourcing data:

Inside VC/Unit: 25

Inside Fixed Costs: 198,000

Outside VC/Unit: 34

Outside Fixed Costs: 122,400

What are total inside and outside production costs at 7,500 units?

business accounting

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Answer 1

Answer #1

Total inside production costs = Variable costs 7,500 units x Inside vc/unit $25 + Inside fixed costs 198,000

= $187,500 + 198,000

= $385,500

Total outside production costs = Variable costs 7,500 units x outside vc/unit 34 + Outside fixed costs 122,400

= $255,000 + 122,400

= $377,400

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Answer 2

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Smith has the following outsourcing data: Inside VC/Unit: 25 Inside Fixed Costs: 198,000 Outside VC/Unit: 34...

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