Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(1) Amman company produces fax machines, and intervention in the manufacturing process piece Spare Parts X .The company needs to 100000 pieces or units annually.
(1) Amman company produces fax machines, and intervention in the manufacturing process piece Spare Parts X .The company needs to 100000 pieces or units annually. The company can buy a piece of the necessary parts from an outside supplier at 9 JD per piece, and will be the cost of transportation JD 1 per piece, as the company can manufacture the piece internally. The following are the estimated costs for the process of manufacturing the required quantity is 100000 pieces: Total costs JD The cost of per piece JD Direct Statement 400000 4 Material 200000 2 Direct labor 200000 2 Industrial variable indirect 350000 3.5 Industrial fixed costs 1150000 11.5 Total Required: Identify suitable alternative: Decision internal manufacturing or purchasing decision and in accordance with the following cases: 1. Exclude the entire industrial fixed costs. 2. Exclude half of Industrial fixed costs. 3. Exclude 20% of the Industrial fixed costs. 4. Exclude direct labor
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started