Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $20, computed as follows:
Direct materials $ 9
Direct labor 5
Variable manufacturing overhead 1
Fixed manufacturing overhead 5
Unit product cost $ 20
An outside supplier has offered to provide the annual requirement of 3,400 of the parts for only $15 each. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision.
Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:
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Ответ:
1. Add 4 to each side of the equation:
2. Divide both sides of the equation by 3:
3.Take the log of each side:
4.Use the Exponential Property and write in decimal form:
5.Divide each side by log 2:
6.Find the value of and substitute:
7. Add 5 to each side of the equation:
8. Simplify:
Step-by-step explanation: