Maximum price cotton Corp should pay = Variable Manufacturing cost = 32.50 + 13 + 19.50 = 65 Option A is the answer |
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Cotton Corp. currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: Direct...
i think these are the answers but im not 100% sure. therefore please write an explanantion on what the correct answer is:) 54) Cotton Corp.currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unit Direct materials $32.50 Direct labor 13.00 Variable manufacturing overhead 19.50 Fixed manufacturing overhead 26.00 Total unit cost $91.00 An outside supplier has offered to provide Cotton Corp with the 10,000 subcomponents at a $84.50 per unit price....
Cotton Corp. currently makes 12,900 subcomponents a year in one of its factories. The unit costs to produce are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $25.00 25.00 14.00 10.ee $74.ee An outside supplier has offered to provide Cotton Corp. With the 12,900 subcomponents at an $76,00 per unit price. Fixed overhead is not avoidable. If Cotton Corp. accepts the outside offer, what will be the effect on short-term profits? Ο no...
Murray Corp. currently makes 5,850 subcomponents a year in one of its factories. The unit costs to produce are: Description Per unit Direct materials $7 Direct labor 2 Variable manufacturing overhead 1 Fixed manufacturing overhead 2 An outside supplier has offered to provide Murray Corp. with the 5,850 subcomponents at a $15 per unit price. Fixed overhead is not avoidable. What is the maximum price Murray Corp. should pay the outside supplier?
Murray Corp. currently makes 9,230 subcomponents a year in one of its factories. The unit costs to produce are: Description Per unit Direct materials $6 Direct labor 2 Variable manufacturing overhead 2 Fixed manufacturing overhead 3 An outside supplier has offered to provide Murray Corp. with the 9,230 subcomponents at a $15 per unit price. Fixed overhead is not avoidable. If Murray Corp. decides to buy from the outside supplier, the impact to net income will be ? If positive,...
Olive Corp. currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unit $ 12 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost 0000 40 An outside supplier has offered to provide Olive Corp. with the 20,000 subcomponents at a $36 per unit price. Fixed overhead is not avoidable. If Olive Corp. accepts the outside offer, what will be the effect on short-term profits? $160,000 decrease $320,000...
Ralston Company makes 10,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct materials $13.20 Direct labor 20.80 Variable manufacturing overhead 3.00 Fixed manufacturing overhead 10.90 Unit product cost $47.90 An outside supplier has offered to sell the company all of these parts it needs for $42.30 a unit. If the company accepts this offer, the facilities now being used to make the part...
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $17, computed as follows: Direct materials $ 6 Direct labor 3 Variable manufacturing overhead 3 Fixed manufacturing overhead 5 Unit product cost $ 17 An outside supplier has offered to provide the annual requirement of 7,800 of the parts for only $11 each. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts...
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $23, computed as follows: $ 8 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 1 6 $23 Unit product cost An outside supplier has offered to provide the annual requirement of 4,700 of the parts for only $10 each. The company estimates that 50% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased...
Supler Corporation produces a part used In the manufacture of one of its products. The unit product cost is $22, computed as follows: al. Variable nanufacturirg overhead 1 Fixed nanufacturing overhead tUnit product cost 22 An outside supplier has offered to provide the annual requirement of 7,000 of the parts for only $16 each. The company estimates that 50 % of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume...
Situation One Rutro Corp. makes 59,000 units per year of a part it uses in the products it manufactures- The unit product cost of this part is computed as follows: Direct material $21.00 Direct labor 23.00 8.00 Variable manufacturing overhead Fixed manufacturing overhead Unit product cost 30.00 $82.00 An outside supplier has offered to sell the company all of the 59,000 parts it needs for $75.00 a unit. If the company accepts this offer, the facilities now being used to...