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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