hw_29_30sol

# hw_29_30sol - Problem 30 Effect on Profit Calculations...

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Problem 29 Effect on Profit Calculations: Incremental cost to buy \$(96,000) \$2.40*40,000 Incremental cost savings: DM 50,400 \$1.26*40,000 VOH 8,800 \$0.22*40,000 DL 20,400 \$0.51*40,000 FOH 1,760 \$0.22*40,000*20% Opportunity cost: Lease revenue 3,700 Incremental decrease in profits if outsourced \$(10,940) Do not outsource since profits will decline by \$10.940
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Unformatted text preview: Problem 30 Effect on Profit Calculations: Incremental cost to buy \$(100,000) \$2.0*50,000 Incremental cost savings: DM 43,000 DL 21,000 VOH 37,000 \$64,000 - \$27,000 FOH 16,200 \$27,000*(100%-40%) Incremental increase in profits if outsourced \$17,200 Outsource since profits will increase by \$17,200....
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## This note was uploaded on 07/09/2011 for the course ACG 2071 taught by Professor Tanner during the Spring '11 term at UNF.

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