They must regard product safety and quality.
Answer:
It is more convenient to buy the component from the outside supplier.
Explanation:
Giving the following information:
Make in-house:
Direct materials $8
Direct labor $5
Variable manufacturing overhead $3
Fixed manufacturing overhead $5
Unit product cost $ 21
Outside supplier:
Units= 2,900
Selling price= $16
80% of the fixed manufacturing overhead costs are avoidable.
We need to calculate the total cost of each option and choose the cheapest.
Produce in-house:
Total cost= 21*2,900= $60,900
Buy:
Total cost= 16*2,900 + (5*0.2)*2,900= $49,300
It is more convenient to buy the component from the outside supplier.
Answer:
$200,000
Explanation:
Total cost = Fixed cost + variable cost
$200,000 = $100,000 + $100,000
Fixed cost is cost that do not vary with production. E.g. rent
If no production activity takes places, fixed cost would still be incurred.
Variable cost is cost that varies with production e.g. wages
If no production activity takes place, there would be no variable cost.
I hope my answer helps you.
Healthcare/Hospitals, Airports/Air Travel, Financial Services and Manufacturing businesses which are in need of information systems.
<h3>What is the need of information systems?</h3>
Storage of operational data, communication logs, documents, and modification histories can be done with the help of information systems. The organization will spend a lot of time searching for certain data if manual data storage is used.
For financial and legal reasons, as well as for identifying the root causes of issues and implementing solutions, your business needs records of its actions. The information system keeps track of communication history, operational data, and document revision histories.
Learn more about information system here
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