OMGT 4323 11 Apr Assignment

OMGT 4323 11 Apr Assignment - Assignment 3 Due Date: April...

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Assignment 3 Due Date: April 11, 2011 11:59:00 PM CDT 6-51 – Make or Buy 1. Make Buy 50,000 units cost per unit 50,000 units Cost per unit Purchase cost $1,050,000 $21 Direct Material $400,000 $8 Direct Labor 300,000 6 Variable factory overhead 150,000 3 Fixed factory overhead 100,000 __6 ________0 ___ (Only relevant included) Total manufacturing costs $950,000 $23 $1,050,000 $21 Difference in favor of making $100,000 $2 Dana should continue making the EC113 parts 2. Make Buy (rent) Buy (make filters) Rent revenue $ --- $ 65,000 $ --- Produce filters --- --- 200,000 Relevant cost of EC113 parts (950,000) (1,050,000) (1,050,000) Net relevant costs $(950,000) $(975,000) $(850,000) In this case, the best choice for Dana Corporation is to buy EC113 parts and produce oil filters. 7-35 Cash Budget – considering income statement in exhibit 7-12 (p326) Cash balance May 31 is $15,000 Sales proceeds are collected as follows: 80% of proceeds received in month of sale 10% of proceeds received month following sale
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This note was uploaded on 05/16/2011 for the course OMGT 4323 taught by Professor Nethercutt during the Spring '11 term at Arkansas.

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OMGT 4323 11 Apr Assignment - Assignment 3 Due Date: April...

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