Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

4. Using the data below, assume instead that ALL of the FIXED COSTS are 3 points common. Should Baby Shark Company make or buy part

image text in transcribedimage text in transcribed

image text in transcribedimage text in transcribedimage text in transcribed
4. Using the data below, assume instead that ALL of the FIXED COSTS are 3 points common. Should Baby Shark Company make or buy part Dootdoot? Indicate the net advantage * Baby Shark Company is currently manufacturing part Dootdoot, producing 40,000 units actually. Dootdoot is used in the production of several products made by Baby Shark. The cost per unit for Dootdoot is as follows: Direct materials P 9.00 Direct labor 3.00 Variable overhead 2.50 Fixed overhead 4.00 Total P18.50 Of the total fixed overhead assigned to Dootdoot, PS8,000 is direct fixed overhead (the lease of production machinery and salary of a production line supervisor-neither of which will be needed if the line is dropped). The remaining fixed overhead is common fixed overhead. An outside supplier has offered to sell the part to Baby Shark for P16. There is no alternative use for the facilities currently used to produce the part. Your answer5. Using the data below, assume instead that ALL of the FIXED COSTS are 2 points common. What is the most that Baby Shark would be willing to pay an outside supplier? * Baby Shark Company is currently manufacturing part Dootdoot, producing 40,000 units actually. Dootdoot is used in the production of several products made by Baby Shark. The cost per unit for Dootdoot is as follows: Direct materials P 9.00 Direct labor 3.00 Variable overhead 2.50 Fixed overhead 4.00 Total P18.50 Of the total fixed overhead assigned to Dootdoot, P88,000 is direct fixed overhead (the lease of production machinery and salary of a production line supervisor-neither of which will be needed if the line is dropped). The remaining fixed overhead is common fixed overhead. An outside supplier has offered to sell the part to Baby Shark for P16. There is no alternative use for the facilities currently used to produce the part. Your answer6. Using the data below, assume instead that ALL of the FIXED COSTS are 2 points common. If Baby Shark bought the part, by how much would income increase or decrease?* Baby Shark Company is currently manufacturing part Dootdoot, producing 40,000 units actually. Dootdoot is used in the production of several products made by Baby Shark. The cost per unit for Dootdoot is as follows: Direct materials P 9.00 Direct labor 3.00 Variable overhead 2.50 Fixed overhead 4.00 Total P18.50 Of the total fixed overhead assigned to Dootdoot, P88,000 is direct fixed overhead (the lease of production machinery and salary of a production line supervisor-neither of which will be needed if the line is dropped). The remaining fixed overhead is common fixed overhead. An outside supplier has offered to sell the part to Baby Shark for P16. There is no alternative use for the facilities currently used to produce the part. Your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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 Management for Public Health and Not for Profit Organizations

Authors: Steven A. Finkler, Thad Calabrese

4th edition

133060411, 132805669, 9780133060416, 978-0132805667

More Books

Students also viewed these Accounting questions