BYP 6-2 - 00 Profit 39,250. 00 12,500 .00 30,000. 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 companys 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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BYP 6-2 - 00 Profit 39,250. 00 12,500 .00 30,000. 00...

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