=+16-32 KKK Waiting times, relevant revenues, relevant costs (continuation of 16-31) OBJECTIVES 2, 3 Highspin Ltd is
Question:
=+16-32 KKK Waiting times, relevant revenues, relevant costs (continuation of 16-31) OBJECTIVES 2, 3 Highspin Ltd is still deciding whether it should introduce RAM. The following table provides information on selling prices, variable costs and inventory carrying costs for IGON and RAM:
Product Annual average number of orders Selling price per order if average manufacturing lead time per order is Variable cost per order Inventory carrying cost per order per hour Less than 320 hours More than 320 hours IGON 50 $27 000 $26 500 $15 000 $0.75 RAM 25 8 400 8 000 5 000 0.25 Required 1 Should Highspin Ltd manufacture and sell RAM? Show your calculations.
Step by Step Answer:
Cost Accounting A Managerial Emphasis
ISBN: 9781442563377
2nd Edition
Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan