Homework Answers
| DL Cost | $ 0.2100 | |
| DM Cost | $ 0.2800 | |
| Variable OH | $ 0.1400 | |
| Avoidable Fixed OH | $ 0.1225 | |
| Making Cost | $ 0.7525 | |
| Purchasing Cost | $ 0.7700 | |
| Additional cost | $ 0.0175 | |
| If the offer is accepted, the restaurant would incur | ||||
| additional cost of (100000 x $ 0.0175) $ 1750 | ||||
| Therefore, it is advisable not to accept the offer. | ||||
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3. (20 pts) A hamburger restaurant currently makes the buns for its hamburgers. It uses 100,000...
A hamburger restaurant currently makes the buns for its hamburgers. It uses 100,000 buns annually, and...
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A hamburger restaurant currently makes the buns for its hamburgers. It uses 100,000 buns annually, and...
A hamburger restaurant currently makes the buns for its hamburgers. It uses 100,000 buns annually, and the costs to make the bun per unit are as follows: DL cost TL0.21 Variable overhead TL0.14 DM cost TL0.28 Fixed overhead TL0.49 A bakery has offered to sell the restaurant buns for TL0.77 each. If the buns are purchased, 25% of the fixed overhead could be avoided. If the offer is accepted, what is the financial impact on the restaurant?
A hamburger restaurant currently makes the buns for its hamburgers. It uses 100,000 buns annually, and...
A hamburger restaurant currently makes the buns for its hamburgers. It uses 100,000 buns annually, and the costs to make the bun per unit are as follows: DL cost TL0.21 Variable overhead TL0.14 DM cost TL0.28 Fixed overhead TL0.49 A bakery has offered to sell the restaurant buns for TL0.77 each. If the buns are purchased, 25% of the fixed overhead could be avoided. If the offer is accepted, what is the financial impact on the restaurant?
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Per Unit
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Variable overhead
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Depreciation of special equipment
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