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german
3 years ago
10

Saran Company has contacted Crane with an offer to sell it 5,100 of the wickets for $16 each. If Crane makes the wickets, variab

le costs are $14 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Crane make or buy the wickets?
Business
1 answer:
Natasha2012 [34]3 years ago
4 0

Answer:<em><u>Crane should buy the wicket as it result in saving of $ 1100</u></em>

Explanation:

Given:

Quantity = 5,100

Price = $16

Variable cost = $14 per unit

Fixed costs = $8 per unit

Buying Cost = 5100 * 16 = $ 81,600

Making Cost = Variable Costs + Avoidable Fixed Costs

Making Cost  = 14 * 5100 + (8 - 5) * 5100 = $ 86,700

Crane should buy the wicket as it result in saving of $ 1100 ($86,700 - $81,600).

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The long-run aggregate supply curve shifts right if:
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2 years ago
Which of the following observations is true?
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Answer:

Which of the following observations is true?

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3 years ago
what are the primary differences between technical communication and other types of communication with which you might have expe
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1 year ago
Sunland Companybudgeted manufacturing costs for 60000 tons of steel are: Fixed manufacturing costs $50000 per month Variable man
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Answer:

$710,000

Explanation:

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<u>Workings</u>

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2 years ago
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