Answer:
The financial advantage (disadvantage) of accepting the outside supplier’s offer is $ 46000
Explanation:
Han Products Manufacturers
Per Unit Differential
Costs 32000 units
Make Buy Make Buy
Purchases 21 672000
Processing Cost
Direct materials $ 3.60 115200
Direct labor 9.00 288000
Variable Mfg overhead 2.40 76800
<u>Fixed Mfg overhead 2.00* 64000 </u>
<u>Total cost $ 17.00 21 544000 672000 </u><u> </u>
2/3 of the Fixed Mfg Cost will be charged and is not relevant if the parts are made or bought. (2/3* 6= $4)
The facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $82,000 which is an opportunity cost.
The complete analysis would be
Make Buy
Total Cost $544000 $ 672000
<u>Opportunity Cost ( Rental Space) 82000 </u>
Total Cost $ 626000 672000
Financial Disadvantage to buy $ 46000
It is better to make it internally than to buy from outside supplier.
Focus on core tasks
Lower costs
Promote growth
Maintain operational control
Offer staffing flexibility
Provide continuity and risk management
Develop internal staff
You have to do some adding and multiplying. first 99.55 times 4 tires
Answer:
$25
Explanation:
Based on the information given if it was estimated that it will cost the amount of $40 in order to assemble the costume which means that After spending the amount of $40 on the costume and you realize that the additional pieces that you will need will still cost extra amount of $25 , that simply means that the MARGINAL COST of you completing the costume will be the extra amount of $25 .
