Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Seebach is unsure what the company should do and would like an analysis showing the unit costs and total costs for each of the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
1. Seebach is unsure what the company should do and would like an analysis showing the unit costs and total costs for each of the tw alternatives given above. Assume that 30,000 oll drums are needed each year. a. What will be the total relevant cost of 30,000 subassemblies if they are manufactured internally as compared to being purchased? b. What would be the per unit cost of the each subassembly manufactured internally? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. Which course of action would you recommend to the president? c. Which course of action would you recommend to the president? Indifferent between the two alternatives Purchase from the outside supplier Manufacture internally 2. Seebach is unsure what the company should do and would like an analysis showing the unit costs and total costs for each of the two alternatives given above. a-1. What will be the total relevant cost of 52,000 subassemblies if they are manufactured internally? a-2. What would be the per unit cost of subassembly manufactured internally? (Do not round intermediate calculations, Round your a-2. What would be the per unit cost of subassembly manufactured internally? (Do not round intermediate calculations. Round your answer to 2 decimal places.) a-3. Which course of action would you recommend if 52,000 assemblies are needed each year? Purchase from the outside supplier Manufacture internally Indifferent between the two alternatives b-1. What will be the total relevant cost of 60,000 subassemblies if they are manufactured internally? b-1. What will be the total relevant cost of 60,000 subassemblies if they are manufactured internally? b.2. What would be the per unit cost of subassembly manufactured internally? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b-3. Which course of action would you recommend if 60,000 assemblies are needed each year? b-2. What would be the per unit cost of subassembly manufactured internally? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b-3. Which course of action would you recommend if 60,000 assemblies are needed each year? Indifferent between the two alternatives Purchase from the outside supplier Manufacture internally 3. This part of the question is not part of your Connect assignment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Cost Accounting A Managerial Emphasis

Authors: Srikant Datar, Madhav Rajan

16th Global Edition

1292211547, 9781292211541

More Books

Students also viewed these Accounting questions