BYP 6-2 - 00 Profit 39,250 00 12,500.00 30,000 00 45,000 00...

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A) What is the difference in profit under each of the alternatives if the clocks are to be sold for $14.50 each to Kmart? Make Silver Star Opt A Silver Star Opt B Silver Star Opt C Alpha Direct Materials 15,750. 00 - - - - Direct Labor 15,000. 00 - - - - Variable Man Costs 2,500. 00 - - - - Fixed Man Costs - 5,000 .00 5,000. 00 5,000. 00 5,000. 00 Purchase Price - 55,000 .00 37,500. 00 22,500. 00 20,000. 00 Total Costs 33,250. 00 60,000 .00 42,500. 00 27,500. 00 25,000. 00 Profit selling to Kmart Selling price $14.50 72,500. 00 72,500 .00 72,500. 00 72,500. 00 72,500. 00 Minus Costs 33,250. 00 60,000 .00 42,500. 00 27,500. 00 25,000.
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Unformatted text preview: 00 Profit 39,250. 00 12,500 .00 30,000. 00 45,000. 00 47,500. 00 B) What are the most important non-financial factors that technology Plus should consider when making this decision? Since each of the difference methods of arriving at the final product do in fact have different costs, they must also ensure that they are selling a product worthy of holding their company’s reputation on it. If they buy cheap material, than the outcome could be a cheap watch that no one will want. The final decision will depict how well the product will do with the people....
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This note was uploaded on 03/01/2012 for the course ACC all taught by Professor All during the Spring '12 term at University of Phoenix.

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BYP 6-2 - 00 Profit 39,250 00 12,500.00 30,000 00 45,000 00...

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