=+3 Now suppose that if Mobile Tech purchases MMCBs from Cellparts, its best alternative use of the

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=+3 Now suppose that if Mobile Tech purchases MMCBs from Cellparts, its best alternative use of the capacity currently used for MMCBs is to make and sell special circuit boards (CB3s) to Chan Ltd. Mobile Tech estimates the following incremental revenues and costs from CB3s:

Total expected incremental future revenues $2 000 000 Total expected incremental future costs $2 150 000 On the basis of financial considerations alone, should Mobile Tech make MMCBs or buy them from Cellparts? Show your calculations.

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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

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