3-1 MyAccountingLab_ Module Three Homework-all questions

2 requirement 1 should manufacture the figurines in

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2 Requirement 1. Should manufacture the figurines in the Cleveland facility or purchase them from the Indonesian supplier? Explain. Plushee of Fun 355,000 The cost of manufacturing figurines in the Cleveland facility is $ and the cost of purchasing figurines from Indonesian supplier is $ . 355,000 1250000 355,000 887500 purchase the figurines from the Indonesian supplier because it is $ than the relevant costs to manufacture the figurines in Cleveland. Plushee of Fun should 362500 less Requirement 2. believes that the U.S. dollar may weaken in the coming months against the Indonesian rupiah and does not want to face any currency risk. Assume that can enter into a forward contract today to purchase IDRs for . Should manufacture the figurines in the Cleveland facility or purchase them from the Indonesian supplier? Explain. Plushee of Fun Plushee of Fun 20,500 $3.70 Plushee of Fun 355,000 manufacture the figurines in Cleveland because the relevant costs of $ to manufacture the figures in Cleveland is than the cost of $ to purchase them. Plushee of Fun should 1250000 less 1313500 Requirement 3. What are some of the qualitative factors that should consider when deciding whether to outsource the figurine manufacturing to Indonesia? (Select any that apply.) Plushee of Fun Quality Delivery lead times Fluctuations in the value of the IDR relative to the U.S. dollar Negative public and media reaction to not providing jobs in Cleveland Expected annual sales of figurines (in units) 355,000 Average selling price of a figurine $4 Price quoted by Indonesian company, in Indonesian Rupiah (IDR), for each figurine IDR 20,500 Current exchange rate IDR = $1 8,200 Variable manufacturing costs per unit $3.00 Incremental annual fixed manufacturing costs associated with the new product line $185,000 Variable selling and distribution costs a per unit $0.60 Annual fixed selling and distribution costs a $250,000 Selling and distribution costs are the same regardless of whether the figurines are manufactured a in Cleveland or imported.
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11/4/2016 3­1 MyAccountingLab: Module Three Homework­David DAbate 3/19 4. 1. Should manufacture the figurines in the Cleveland facility or purchase them from the Indonesian supplier? Explain. Plushee of Fun 355,000 2. believes that the U.S. dollar may weaken in the coming months against the Indonesian rupiah and does not want to face any currency risk. Assume that can enter into a forward contract today to purchase IDRs for . Should manufacture the figurines in the Cleveland facility or purchase them from the Indonesian supplier? Explain. Plushee of Fun Plushee of Fun 20,500 $3.70 Plushee of Fun 355,000 3. What are some of the qualitative factors that should consider when deciding whether to outsource the figurine manufacturing to Indonesia? Plushee of Fun List and briefly describe each of the five stages in capital budgeting. Begin by listing the five stages in capital budgeting and then briefly describe each stage.
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