please explain why or why not
the company should outsource along with the answer.
Homework Answers
71.
Break-even analysis is a technique by which business identify the sales volume when the total cost and total revenue is equal. So, the company neither makes profit nor loss.
Break-even analysis is important for business because it help in drafting good business plan by determining cost structure and the volume required to cover the cost in order to make profit.
Add Answer to:
please explain why or why not
the company should outsource along with the answer.
A manufacturing...
More Info Another company has offered to sell Best Systems the switch for $16.00 per unit....
More Info Another company has offered to sell Best Systems the switch for $16.00 per unit. If Best Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. Print Done Best Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: (Click the icon to view the costs.) (Click the icon to...
Please show work and explain 2. Gizmo, Inc. is a diversified multinational manufacturer. The CEO is...
Please show work and explain
2. Gizmo, Inc. is a diversified multinational manufacturer. The CEO is considering outsourcing the marketing research function to a global consulting firm. The consulting firm would charge a fixed annual fee of $1,300,000. At present, the costs of operating the marketing research department are $1,508,000 per year, as follows: Director salary $146,000 Staff salaries 890,000 Travel 137,000 Occupancy 84,000 Consultants 90,000 Executive VP 75,000 Overhead 40,000 Miscellaneous 46,000 The outsourcing firm would perform all duties...
Spectra Systems manufactures an optical switch that it uses in its final product. The switch has...
Spectra Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: : (Click the icon to view the costs.) Another company has offered to sell Spectra Systems the switch for $17.50 per unit. If Spectra Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. Prepare an outsourcing analysis to determine whether...
F Question 3: Make versus buy You make refrigerators. Currently, you manufacture compressors for your refrigerators...
F Question 3: Make versus buy You make refrigerators. Currently, you manufacture compressors for your refrigerators in-house. An outside supplier has offered to sell you equivalent compressors at a wholesale price of $85 per unit. You need 1,000 compressors per month. The internal production costs per compressor are as follows: cost per unit direct materials $30 direct labor $30 variable overhead $20 fixed overhead $10 total $90 If you outsource the production of compressors (the buy option) in the short...
Question 3: Make versus buy You make refrigerators. Currently, you manufacture compressors for your refrigerators in-house....
Question 3: Make versus buy You make refrigerators. Currently, you manufacture compressors for your refrigerators in-house. An outside supplier has offered to sell you equivalent compressors at a wholesale price of $75 per unit. You need 1,000 compressors per month. The internal production costs per compressor are as follows: cost per unit direct materials $20 direct labor $30 variable overhead $20 fixed overhead $20 total $90 If you outsource the production of compressors (the buy option) in the short term,...
Question 3: Make versus buy You make refrigerators. Currently, you manufacture compressors for your refrigerators in-house....
Question 3: Make versus buy You make refrigerators. Currently, you manufacture compressors for your refrigerators in-house. An outside supplier has offered to sell you equivalent compressors at a wholesale price of $95 per unit. You need 1,000 compressors per month. The internal production costs per compressor are as follows: cost per unit direct materials $40 direct labor $40 variable overhead $10 fixed overhead $30 total $120 If you outsource the production of compressors (the buy option) in the short term,...
Winter Pro makes downhill ski equipment. Assume that Atomic has offered to produce ski poles for Winter Pro for $20 per...
Winter Pro makes downhill ski equipment. Assume that Atomic has offered to produce ski poles for Winter Pro for $20 per pair. Winter Pro needs 130,000 pairs of poles per period. Winter Pro can only avoid $190,000 of fixed costs if it outsources; the remaining fixed costs are unavoidable. Winter Pro currently has the following costs at a production level of 130,000 pairs of poles: (Click the icon to view the table.) 1. 2. Should Winter Pro outsource ski pole...
For the Wantage boxes drop down options are should or should not for the first drop...
For the Wantage boxes drop down options are should or should not
for the first drop down and for the second box it is decrease
profit by $475 or increase profit by $475.
Wantage Company makes decorative wedding cakes. The company is considering buying the cakes rather thanbaking Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Wantage expects to retain them, which will allow it to concentrate on decorating. The company averages 100 wedding...
Question Help Tech Systems manufactures an optical switch that it uses in its final product. The...
Question Help Tech Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit (Click the icon to view the costs) (Click the icon to view additional information) Prepare an outsourcing analysis to determine whether Tech Systems should make or buy the switch. (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceed the cost of making the switches in house) Make optical...
d. represent costs that should be minimized in Ulue WCI U 6. Baker Company manufactured and...
d. represent costs that should be minimized in Ulue WCI U 6. Baker Company manufactured and sold 200.000 plastic combs. Manufacturing costs for the 200,000 combs are as follows: Per unit Total Direct Material $1.00 Direct Labor $ .50 Variable MOH $.10 Variable Selling $.20 Fixed MOH $100,000 Fixed Selling $ 40,000 The product cost per unit using absorption (traditional costing) would be: $1.60 b. $1.80 $2.10 $2.30 7. Refer to the previous question. If the firm uses variable costing,...
More Info Another company has offered to sell Best Systems the switch for $16.00 per unit. If Best Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. Print Done Best Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: (Click the icon to view the costs.) (Click the icon to...
Please show work and explain
2. Gizmo, Inc. is a diversified multinational manufacturer. The CEO is considering outsourcing the marketing research function to a global consulting firm. The consulting firm would charge a fixed annual fee of $1,300,000. At present, the costs of operating the marketing research department are $1,508,000 per year, as follows: Director salary $146,000 Staff salaries 890,000 Travel 137,000 Occupancy 84,000 Consultants 90,000 Executive VP 75,000 Overhead 40,000 Miscellaneous 46,000 The outsourcing firm would perform all duties...
Spectra Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: : (Click the icon to view the costs.) Another company has offered to sell Spectra Systems the switch for $17.50 per unit. If Spectra Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. Prepare an outsourcing analysis to determine whether...
Winter Pro makes downhill ski equipment. Assume that Atomic has offered to produce ski poles for Winter Pro for $20 per pair. Winter Pro needs 130,000 pairs of poles per period. Winter Pro can only avoid $190,000 of fixed costs if it outsources; the remaining fixed costs are unavoidable. Winter Pro currently has the following costs at a production level of 130,000 pairs of poles: (Click the icon to view the table.) 1. 2. Should Winter Pro outsource ski pole...
For the Wantage boxes drop down options are should or should not
for the first drop down and for the second box it is decrease
profit by $475 or increase profit by $475.
Wantage Company makes decorative wedding cakes. The company is considering buying the cakes rather thanbaking Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Wantage expects to retain them, which will allow it to concentrate on decorating. The company averages 100 wedding...
Question Help Tech Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit (Click the icon to view the costs) (Click the icon to view additional information) Prepare an outsourcing analysis to determine whether Tech Systems should make or buy the switch. (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceed the cost of making the switches in house) Make optical...
d. represent costs that should be minimized in Ulue WCI U 6. Baker Company manufactured and sold 200.000 plastic combs. Manufacturing costs for the 200,000 combs are as follows: Per unit Total Direct Material $1.00 Direct Labor $ .50 Variable MOH $.10 Variable Selling $.20 Fixed MOH $100,000 Fixed Selling $ 40,000 The product cost per unit using absorption (traditional costing) would be: $1.60 b. $1.80 $2.10 $2.30 7. Refer to the previous question. If the firm uses variable costing,...
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