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2 Pages
BYP 6-2
Course: ACC all, Spring 2012School: University of Phoenix
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Word Count: 159
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What A) is the difference in profit under each of the alternatives if the clocks are to be sold for $14.50 each to Kmart? Direct Materials Direct Labor Variable Man Costs Make 15,750. 00 15,000. 00 2,500. 00 Silver Star Opt A Silver Star Opt B Silver Star Opt C Alpha - - - - - - - - - 5,000 Fixed Man Costs - .00 55,000 Purchase Price - Total Costs 33,250. 00 .00 60,000 .00 - - 5,000....
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What A) is the difference in profit under each of the alternatives if the clocks are to be sold
for $14.50 each to Kmart?
Direct Materials
Direct Labor
Variable Man Costs
Make
15,750.
00
15,000.
00
2,500.
00
Silver
Star Opt
A
Silver
Star Opt
B
Silver
Star Opt
C
Alpha
-
-
-
-
-
-
-
-
-
5,000
Fixed Man Costs
-
.00
55,000
Purchase Price
-
Total Costs
33,250.
00
.00
60,000
.00
-
-
5,000.
5,000.
5,000.
00
37,500.
00
42,500.
00
00
22,500.
00
27,500.
00
00
20,000.
00
25,000.
00
72,500.
00
42,500.
00
30,000.
00
72,500.
00
27,500.
00
45,000.
00
72,500.
00
25,000.
00
47,500.
00
Profit selling Kmart
Selling to price $14.50
Minus Costs
Profit
72,500.
00
33,250.
00
39,250.
00
72,500
.00
60,000
.00
12,500
.00
B) What are the most important non-financial factors that technology Plus should consider
when making this decision?
Since each of the difference methods of arriving at the final product do in fact have different
costs, they must also ensure that they are selling a product worthy of holding their companys
reputation on it. If they buy cheap material, than the outcome could be a cheap watch that no one
will want. The final decision will depict how well the product will do with the people.
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