allendm5166
17.03.2020 •
Business
Laskowski Company manufactures a part for its production cycle. The annual costs per unit for 5,000 units of the part are as follows:
Per Unit
Direct materials $3.00
Direct labor 5.00
Variable factory overhead 4.00
Fixed factory overhead 2.00
Total costs $14.00
The fixed factory overhead costs are unavoidable. Hendricks Company has offered to sell 5,000 units of the same part to Laskowski Company for $14 per unit. The facilities currently used for the part could be used to make 5,000 units annually of a new product that would contribute $5 a unit to fixed expenses. No additional fixed costs would be incurred with the new product. Laskowski Company should .
A) make the part to save $5,000
B) make the part to save $15,000
C) make the new product and buy the part to save $5,000
D) make the new product and buy the part to save $15,000 (this is the correct answer, please explain why)
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Ответ:
D) make the new product and buy the part to save $15,000
Explanation:
Total Cost to Make a Product = Cost per unit * units = 14*5,000 =70,000
Relevant cost to Buy the Product
= Cost to purchase per Unit + Fixed Overhead Per Unit - Contribution Per Unit From New Product
= $14+2 -5 = 11.00 Per Unit
Cost to Buy = 11,,00*5000 =55,000
Net Advantage to Buy = 70,000-55000 = $15,000
Ответ:
I believe it would be A. dark blue because if you have 50,000+ for dark blue they have the most.
Explanation: