Answered step by step
Verified Expert Solution
Question
1 Approved Answer
35 Assume a company makes only three products, A, B, and C Product A Product B Product C Selling price per unit Variable cost per
35 Assume a company makes only three products, A, B, and C Product A Product B Product C Selling price per unit Variable cost per unit Machine-hours per unit $ 80 $ 35 2.5 $ 65 $25 $ 45 $20 1.5 The company does not have enough machine-hours available to satisfy demand for all of its products. Product A's contribution margin per unit of the constraining resource is closest to O Multiple Choice O $18.00 $45.00 $112.50 $46.00 33 O O Assume a company is considering buying 10,000 units of a component part rather than making them. A supplier has agreed to sell the company 10.000 units for a price of $40.25 per unit. The company's accounting system reports the following costs of making the part 10,000 Units Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost Per Unit per Year $17 12 $170,000 120,000 2 20,000 8 88,000 4 $ 43 40,000 $430,000 One-half of the traceable fixed manufacturing overhead relates to supervisory salaries and the remainder relates to depreciation of equipment with no salvage value. If the company chooses to buy this component p from a supplier, then the supervisor who oversees its production would be discharged. What is the financial advantage (disadvantage) of buying 10,000 units from the supplier? Multiple Choice $40,000) $52.900 $2.500 $105.000
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