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cearadenney7067
19.06.2021 •
Business
Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 25 $ 10 Direct labor 22 21 Variable manufacturing overhead 17 7 Traceable fixed manufacturing overhead 18 20 Variable selling expenses 14 10 Common fixed expenses 17 12 Total cost per unit $ 113 $ 80 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 9. Assume that Cane expects to produce and sell 82,000 Alphas during the current year. A supplier has offered to manufacture and deliver 82,000 Alphas to Cane for a price of $88 per unit. What is the financial advantage (disadvantage) of buying 82,000 units from the supplier instead of making those units
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Ответ:
Cane Company
The financial advantage of buying 82,000 units from the supplier instead of making those units is:
= $656,000.
Explanation:
a) Data and Calculations:
Alpha Beta
Selling price $130 $90
Annual production capacity 102,000 102,000 units
Direct materials per unit $25 $10
Direct labor 22 21
Variable manufacturing overhead 17 7
Traceable fixed manufacturing overhead 18 20
Variable selling expenses 14 10
Common fixed expenses 17 12
Total cost per unit $ 113 $ 80
Cost of Alphas Make Buy Difference
Direct materials per unit $25
Direct labor 22
Variable manufacturing overhead 17
Traceable fixed manufacturing overhead 18
Variable selling expenses 14
Total cost per unit $ 96 $ 88 $ 8
Expected production/sales and purchase 82,000 82,000 82,000
Total cost or producing or buying $7,872,00 $7,216,000 $656,000
Ответ:
Refer below.
Explanation:
Favorite parts are:
The customers (funders) and clients (singular philanthropic staff) are extraordinary to work with. I can be open about being an individual of confidence when suitable. The assortment of my assignments every day.