Question

JLM Company makes 12,000 units per year of a part it uses in the
products it manufactures. The per unit product cost of this part
is shown below:

direct materials ..............  $15.00
direct labor ..................   16.00
variable overhead .............   11.00
fixed overhead ................   ?????
total .........................  $?????

An outside supplier has offered to sell JLM Company 12,000 units
of this part a year for $55.00 per unit. If JLM Company accepts
this offer, the facilities now being used to make this part could
be used to make more units of a product that is in high demand.
The additional contribution margin that could be earned on this
other product would be $34,800 per year.

60% of the fixed overhead would be eliminated if JLM purchases
the part from the outside supplier. The other 40% of the fixed
overhead is allocated and would be still be incurred even if 
the part is purchased from the outside supplier.

It has been determined that if JLM Company purchases the part
from the outside supplier their net income would increase by
$30,000.

Calculate the fixed overhead cost per unit related to this part.

Answer 1

DATE tho given ustion e iCsease in Net in como In is 30000 I348c0 in csease in tontsibution we know that Poapit- Contoi bution-Fixed cast 34800 Fixed cast $48co Fixed cast let the total ixed 6ast be x and we know that 4800 i 40/ Total ixed Cat 48a0 υοx T 48c0 YIco 40 х- 12a00 PIxed Pes unit ఇ (2an Note- Tax Rate 19 not ahven in the Ruestion So Net income will be considoned the Paopt af the company OP Shot on-OnePlus Powered by Dual Camera