Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

12 Deer currently manufactures a subcomponent that is used in its main product. A supplier has offered to supply all the subcomponents needed at a

12 Deer currently manufactures a subcomponent that is used in its main product. A supplier has offered to supply all the subcomponents needed at a price of $32.80 Deer currently produces 17,000 subcomponents at the following manufacturing costs: 15 pin Direct materials Direct labor Variable manufacturing everhead Fixed manufacturing overhead Unit cost Per int $11.60 6.30 4.90 2.20 325.00 a. If Deer has no alternative uses for the manufacturing capacity, what would be the profit impact of buying the subcomponents from the supplier? b. f Deer has no alternative uses for the manufacturing capacity, what would be the maximum price per unit they would be willing to pay the supplier? (Round your answer to nearest whole number) Masmum Price por unt Check my work 36.45 b. If Deer has no alternative uses for the manufacturing capacity, what would be the maximum price per unit they would be willing to pay the supplier? (Round your answer to nearest whole number.) Mannur Price per unit c. Now assume Deer would avoid $186,000 in equipment leases and salaries if the subcomponent were purchased from the supplier. Now what would be the profit impact of buying from the supplier

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

Financial Statement Analysis And Business Valuation Case Studies Using Excel

Authors: Dr Alessio Faccia

1st Edition

979-8863186412

More Books

Students also viewed these Accounting questions