Answered step by step
Verified Expert Solution
Question
1 Approved Answer
12. The Tim's T Sh The 25.000 Total monthly data 24 units Peronit 55 Fotos This 5 14.500 T ached hyllyouthcamp that w e have
12. The Tim's T Sh The 25.000 Total monthly data 24 units Peronit 55 Fotos This 5 14.500 T ached hyllyouthcamp that w e have 2Tht produced. The Tipade this for 90 sach rather than the standard wice of S1000 Tinaca produce i s a math sathe special order will not affect regular customer sales. Variable per unit will remain 5 50, but action of the shirts will require a special machine that costs $2.500 Thic al onder will have the effect on thly fixed cost 15 Points 1 d a y deten h ether Tine would be off accepting or rejecting the 3 Assume Tina can only produce 25.000 T-shirts per month and that regular customer sales would decrease as a result of the special order. Using differential analysis, determine whether in wow he h e off compongo acting the special order 71. Snowboard Inc, currently produces snowboards Management is interested in outsourcing production of snowboards to a reputable manufacturing company that can supply the snowboards for $250 per unit. Snowboard the incus the following annual production costo produce 6.000 Per Unit Total annual costat 6.000 units Variable production costs SINO 50 5 LONDO 100.000 120.000 20 Director Manufacturing overhead Fired production costs Factory building and equipment lease Factory insurance Production supervisor salary Total production costs 220.000 65.000 S1.875.000 Outsourcing production eliminates all variable production costs. the production supervisor's salary, and factory insurance costs. Factory building and equipment l e costs will remain the same regardless of the decision to outsource or to produce internally. (12 Points) (1) Perform a differential analysis, assuming that making the snowboard internally is alternative and buying the snowboard from an outside manufacturer is alternative 2. (2) Explain which alternative is best and why
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