Frannie Fans currently manufactures ceiling fans that include remote.docx

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Frannie Fans currently manufactures ceiling fans that include remotes to operate them. Frannie is approached by Lincoln Company which offers to make the remotes for $18 per unit. Required: 1. Compute the difference in cost between making and buying the remotes if none of the fixed costs can be avoided. What is the change in net income? 2. Compute the difference in cost between making and buying the remotes if $20,520 of the fixed costs can be avoided. What is the change in net income? 3. What is the change in net income if fixed cost of $20,520 can be avoided and Frannie could rent out the factory space no longer in use for $20,520? 1 Blossom, Inc., is a small company that manufactures three versions of patio tables. Unit information for its products follows: Table A Table B Table c Sales price 45 49 63 4 Direct materials 8 9 10 points Direct labor 1 3 7 Variable manufacturing overhead Fixed manufacturing overhead 3 3 3 4 4 4 Required number of labor hours Required number of machine hours 0.50 0.50 1.00 ook
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  • Fall '19
  • blossom, versions of patio tables

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