Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

20. Creative Ammo currently makes and sells 5.7 x 28 bullets (3 pts) Information related to its revenue and costs are listed below: Sales

image

20. Creative Ammo currently makes and sells 5.7 x 28 bullets (3 pts) Information related to its revenue and costs are listed below: Sales Variable costs Fixed costs $ 15,151.15 $ 10,100.10 3,333.32 Units Sold 7,800 Fins Distributors has offered to sell its 5.7 x 28 bullets to Creative Ammo for $1.33 per unit. Half of the fixed costs can be saved by purchasing the bullets from Fins Distributors. What will be the difference in the total costs between continuing to make the bullets and purchasing the bullets from Fins Distributors? And should Creative Ammo continue to make the bullets or purchase them from Fins Distributors? Make or Buy Qty: Make Fixed Costs Variable Costs Total Costs to make Buy: Fixed Costs Variable Costs Total Costs to make Difference total per unit total per unit

Step by Step Solution

3.53 Rating (160 Votes )

There are 3 Steps involved in it

Step: 1

Answer First lets calculate the total cost of making the bullets and the total cost of purchasing th... 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

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0073379616, 73379611, 978-0697789938

More Books

Students also viewed these Accounting questions

Question

What are the functional sources of power?

Answered: 1 week ago