hi! can you please answer this. thanks and have a great day.
Solution 1:
Differential Analysis - Making Drum (alt 1) or Buy Drum (Alt2) - 60000 drums | |||
Particulars | Making Drum (Alt 1) | Buy Drum (Alt 2) | Financial advantage (Disadvantage) of buying (Alternative 2) |
Costs: | |||
Purchase Price (60000*$19) | $0.00 | $1,140,000.00 | -$1,140,000.00 |
Direct material | $630,000.00 | $0.00 | $630,000.00 |
Direct Labor | $315,000.00 | $0.00 | $315,000.00 |
Variable overhead | $63,000.00 | $0.00 | $63,000.00 |
Supervisory Salary - Avoidable | $66,000.00 | $0.00 | $66,000.00 |
Equipment Rent - Avoidable | $198,000.00 | $0.00 | $198,000.00 |
Total cost | $1,272,000.00 | $1,140,000.00 | $132,000.00 |
Solution 2:
Differential Analysis - Making Drum (alt 1) or Buy Drum (Alt2) - 120000 drums | |||
Particulars | Making Drum (Alt 1) | Buy Drum (Alt 2) | Financial advantage (Disadvantage) of buying (Alternative 2) |
Costs: | |||
Purchase Price (120000*$19) | $0.00 | $2,280,000.00 | -$2,280,000.00 |
Direct material | $1,260,000.00 | $0.00 | $1,260,000.00 |
Direct Labor | $630,000.00 | $0.00 | $630,000.00 |
Variable overhead | $126,000.00 | $0.00 | $126,000.00 |
Supervisory Salary - Avoidable | $66,000.00 | $0.00 | $66,000.00 |
Equipment Rent - Avoidable | $198,000.00 | $0.00 | $198,000.00 |
Total cost | $2,280,000.00 | $2,280,000.00 | $0.00 |
Solution 3:
Differential Analysis - Making Drum (alt 1) or Buy Drum (Alt2) - 150000 drums | |||
Particulars | Making Drum (Alt 1) | Buy Drum (Alt 2) | Financial advantage (Disadvantage) of buying (Alternative 2) |
Costs: | |||
Purchase Price (150000*$19) | $0.00 | $2,850,000.00 | -$2,850,000.00 |
Direct material | $1,575,000.00 | $0.00 | $1,575,000.00 |
Direct Labor | $787,500.00 | $0.00 | $787,500.00 |
Variable overhead | $157,500.00 | $0.00 | $157,500.00 |
Supervisory Salary - Avoidable | $66,000.00 | $0.00 | $66,000.00 |
Equipment Rent - Avoidable | $198,000.00 | $0.00 | $198,000.00 |
Total cost | $2,784,000.00 | $2,850,000.00 | -$66,000.00 |
hi! can you please answer this. thanks and have a great day. "In my opinion, we...
“In my opinion, we ought to stop making our own drums and accept that outside supplier’s offer,” said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. “At a price of $18 per drum, we would be paying $5 less than it costs us to manufacture the drums in our own plant. Since we use 60,000 drums a year, that would be an annual cost savings of $300,000.” Antilles Refining’s current cost to manufacture one drum is given below...
Please answer all of them "In my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. "At a price of $18 per drum, we would be paying $6.65 less than it costs us to manufacture the drums in our own plant. Since we use 65,000 drums a year, that would be an annual cost savings of $432,250." Antilles Refining's current cost to manufacture...
"In my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. "At a price of $18 per drum, we would be paying $5 less than it costs us to manufacture the drums in our own plant. Since we use 60,000 drums a year, that would be an annual cost savings of $300,000." Antilles Refining's current cost to manufacture one drum is given below...
Problem 11-28 Make or Buy Decisions [LO11-3] "In my opinion, we ought to stop making our own drums and accept that outside supplier's offer." said Wim Niewindt, managing director of Antilles Refining. N.V.. of Aruba. "At a price of $20 per drum, we would be paying $5.25 less than it costs us to manufacture the drums in our own plant. Since we use 95.000 drums a year, that would be an annual cost savings of $498,750." Antilles Refining's current cost...
"In my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. "At a price of $20 per drum, we would be paying $4.25 less than it costs us to manufacture the drums in our own plant. Since we use 75,000 drums a year, that would be an annual cost savings of $318,750." Antilles Refining's current cost to manufacture one drum is given below...
"In my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. "At a price of $18 per drum, we would be paying $6.65 less than it costs us to manufacture the drums in our own plant. Since we use 65,000 drums a year, that would be an annual cost savings of $432,250." Antilles Refining's current cost to manufacture one drum is given below...
"In my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. "At a price of $21 per drum, we would be paying $4.85 less than it costs us to manufacture the drums in our own plant. Since we use 50,000 drums a year, that would be an annual cost savings of $242,500." Antilles Refining's current cost to manufacture one drum is given below...
“In my opinion, we ought to stop making our own drums and accept that outside supplier’s offer,” said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. “At a price of $21 per drum, we would be paying $7.05 less than it costs us to manufacture the drums in our own plant. Since we use 65,000 drums a year, that would be an annual cost savings of $458,250.” Antilles Refining’s current cost to manufacture one drum is given below...
Problem 11-28 Make or Buy Decisions [LO11-3] “In my opinion, we ought to stop making our own drums and accept that outside supplier’s offer,” said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. “At a price of $19 per drum, we would be paying $5.35 less than it costs us to manufacture the drums in our own plant. Since we use 60,000 drums a year, that would be an annual cost savings of $321,000.” Antilles Refining’s current cost...
“In my opinion, we ought to stop making our own drums and accept that outside supplier’s offer,” said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. “At a price of $19 per drum, we would be paying $5.80 less than it costs us to manufacture the drums in our own plant. Since we use 70,000 drums a year, that would be an annual cost savings of $406,000.” Antilles Refining’s current cost to manufacture one drum is given below...