Question

Decision Making 1 MAY Ml currently buys product to a pple, 3150 a piece Product is sold by Mil's Mil at $250. Nonetheless, manager of Mel's consider that product X could be produced in house, and the estimated costs of production are as follows: wrotle production cost $90 per unit fed production costs: $2.100.000 per year. Additional food sales and d i v erses: 1.000.000 *) the company requires 50,000 units per year. Should it continue buying product from the deal supplier ) At which point of production would be indiferent for als produce or to buy product X? 2-Emest Golding had just received the following variable costing income statement Product A $100.000 $250,000 Variable Costs Contribution Margin 50.000 105.000 Foed expenses Operating income (2008) 30,000) Golding was derred to this was the f i ve in which both products and shown a loss. Upon review, Golding discovered that some cope s ($20,000 in product and 60.000 product bij where ouded in the f o rection, even though the s e common and not related to the product ine (for example of the 100.000 d in product only $60,000 wedret led to the product Gold sowas told that the products were for each otherWeiter product is dropped the sales of the other product wil s Products by to os dropped and Bs by 10% Als dropped. Y the company dropped tonines who they would love the facility and us, the common feed costs would be eliminated # How much prolts caming Gading in eachine that is adding the common feed.co) Assume that Golding I choose among one of the following serves & Keepboth products Drop both products Drop produd A d Drop products

Answer 1

فعل علوم مهمومكملnfعيبهگام - tur options Buy from Bukide Mike in house = Allrochuet y ij bought from Houtwe (isexsocco) Soocos $450oooo aldus (6) Varintele cost of manufacturer (540x souse) o ffised cost for inducex maxfautick - Total cost - should breas_manifeste $ 7500 000 _ p(600000 a (B+C) produult x_and het bouy - buy from outside Sales and administrative cnpena aceipneed leccam_they will lec inuured in bath cases, they making to dildesence indeman и

Indifferent point - Pediamo a much point of production de "an"unite let if it will be indifferent xx 150 = 2 x 90 + 210DODO 150x = 90 x + 210000 son-gon = 2 100ooo - ko 210000 60 35000 units Product A (๒) งบ perduet s 4S600 Kess: Variable cost Contrilection fixed expenses 50000 Soooo 6000 (300 w - 2000) t loose) 145000 losooo 55000 (1050oo-soow operating incen Soooo

on net To as if we kep bello product And will be some as a - product 4 procent B (toro) + Soord - 40000 __less : common cost = $70000 - > (30000) b_drop boste preclucet _de_prefi, no less 112 Drep_Buduct A _- - Brochut B Sales 97500 154 SOU 114 Sogo +107) ال و تعامل 115502 I contrilention margina (10.000-50000) 5502 Gosoo 70000 les: fixed cost Net Incom fosse hess! Common cost me) 9500 (ho ce less : _prof products 150000 Tigouvo Sul.) Issovo + Sot 2 a sool ove Sales lasi Vaviable lost Lertheliom mafia Less: fixed cost la sooo 6000 (80000 - 2000) (soow i wood 65000 7000 (ovo) Net incom (Loss) Lexs. comrron cost Alet Results fretios. من الامام عليه الوليد 19 better are drepped in no pais no loss fy Produd A doupped Net Loss 9500 - drepeed Nil loss swoo This drop both products