Question 4 foto company makes 50000 units per year of

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Question 4 Foto Company makes 50,000 units per year of a part it uses in the products it manufactures. The cost per unit of this part is shown below : direct materials .............. $12.00 direct labor .................. 10.10 variable overhead ............. 6.50 allocated fixed overhead ...... 9.60 total ......................... $38.20 An outside supplier has offered to sell Foto Company 50,000 of these parts for $37.60 per unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin earned on this other product would be $310,000 per year . Calculate the decrease in company profits if Foto Company accepts the outside suppliers offer . BUY MAKE
Question 5 Foto Company makes 50,000 units per year of a part it uses in the products it manufactures. The cost per unit of this part is shown below : direct materials .............. $12.00 direct labor .................. 10.10 variable overhead ............. 6.50 allocated fixed overhead ...... 9.60 total ......................... $38.20 An outside supplier has offered to sell Foto Company 50,000 of these parts for $37.60 per unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin earned on this other product would be $310,000 per year . Calculate the selling price per unit charged by the outside supplier that would make Foto economically indifferent between making and buying the part . BUY MAKE x X

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