Problem and Solution 14-36 & 37

Problem and Solution 14-36 & 37 - Problem No 14 -36...

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Problem No 14 -36 Fusion Metals company is considering the elimination of its packing department. Management has received an offer from an out side firm to supply all fussion’s packaging needs. To help in making ‘s decision, Fusion’s president has asked the controller for an analysis of the cost of running Fusion’s Packaging Department. Included in that analysis is $ 9,100 of rent, which represents packaging department’s allocation of the rent on Fusion’s factory building. If the packaging department is eliminated, the space it used will be converted to a storage space. Currently Fusion rents storage space in a near by warehouse for $ 11,000 per year. The wear house rental would no longer be necessary if the packaging department were eliminated. Requirement: 1. Discuss each of the figures given in the exercise with regard to its relevance in the department – closing decision. 2.
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Problem and Solution 14-36 & 37 - Problem No 14 -36...

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