Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A click the loon to view the make versus buy information) The Svenson Corporation manufactures cellular moderns. It manufactures its own cellular modern circuit boards

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
A click the loon to view the make versus buy information) The Svenson Corporation manufactures cellular moderns. It manufactures its own cellular modern circuit boards (CMCB), an important part of the cellular modem.it reports the following cost information about the costs of making CMCBs in 2017 and the expected costs in 2018: " (Click the icon to view the costs.) Read the requirements. during Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018 Total Manufacturing Manufacturing Costs of CMCB Cost per Unit Direct materials Direct manufacturing labor Variable batch manufacturing costs D Fixed manufacturing costs Avoidable fixed manufacturing costs Unavoidable fixed manufacturing costs Total manufacturing costs Varie Requirement 2. Suppose the capacity currently used to make CMCBs will become idle if Svenson purchases CMCBs from Minton. On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton? Show your calculations. (If a box is not used in the table, leave the box empty, do not enter a zero.) Make Buy Choose from any list or enter any number in the input fields and then continue to the next question Save for Later The S on Corporation manufactures cellular modems. It manufactures its own A (Click the loon to view the make versus-buy information.) cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBs in 2017 Read the requirements. and the expected costs in 2018: (Click the icon to view the costs.) RUS, N ON UUS uy WWW OW your W ww W OG enter a zero.) Make Per Unit Total Per Unit C Total relevant costs Svenson should CMCBs because it costs Requirement 3. Now suppose that if Svenson purchases CMCBs from Minton, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Essex Corporation. Svenson estimates incremental revenues from selling CB3s to be $2,000,000, and incremental costs from making CB3s to be $2,150,000. On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton? Show your calculations (Complete all answer boxes. For amounts with a 50 balance, make sure to enter in the appropriate col.) Choose from any list or enter any number in the input fields and then continue to the next question Save for Later A Click the loon to view the make-versus buy information.) The Svenson Corporation manufactures cellular moderns. It manufactures is own cellular modem circuit boards (CMCB), an important part of the cellular modern. It reports the following cost information about the costs of making CMCBs in 2017 and the expected costs in 2018: (Click the icon to view the costs.) Read the requirements Requirement 3. Now suppose that if Svenson purchases CMCBs from Minton, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Essex Corporation. Svenson estimates incremental revenues from selling CB3s to be $2,000,000, and incremental costs from making C33s to be $2,150,000. On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton? Show your calculations (Complete all answer boxes. For amounts with a $0 balance, make sure to enter to in the appropriate col.) Choices for Svenson Make CMCBS CNCR Buy CMCBS Buy CMCBs Buy CMCB. Buy CMCBS and Do Not and Do Not and Make Relevant items Make CB30 CB3 Total incremental costs of making/buying CMCBs (from requirement 2) Excess of future costs over future revenues from CB3s Total relevant costs 3 nts & 58 ZI Svenson will minimize manufacturing costs by Choose from any list or enter any number in the input fields and then continue to the next questi Save for Later U RID 180 to view the make-versus-buy Information, Cellular modem circuit boards (CMCB), an important part of the cellular modern. It I reports the following cost information about the costs of making CMCBs in 2017 and the expected costs in 2018: !!! (Click the icon to view the costs Det er i OLOMI Read the requirements O Requirements X and se Requiremer special circu making CB3 (Complete a s from tions. Relevant it 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2018. 2. Suppose the capacity currently used to make CMCBs will become idle if Svenson purchases CMCBs from Minton. On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton? Show your calculations 3. Now suppose that if Svenson purchases CMCBs from Minton, its best alternative use of the capacity currently used for CMCBs is to make and sell special circuit boards (CB3s) to the Essex Corporation. Svenson estimates the following incremental revenues and costs from CB3s: Total expected incremental future revenues $2,000,000 Total expected incremental future costs $2,150,000 On the basis of financial considerations alone, should Svenson make CMCBs or buy them from Minton? Show your calculations Total increm making requiren Excess of full revenue Print Print Done Total releva Svenson will minimize manufacturing costs by S to be $2,000,000 s) to the Essex Corporation. Svenson estimates incremental revenues from Selling U ,000. Ont is. For amd More Info Ant X Svenson manufactured 8,000 CMCBs in 2017 in 40 batches of 200 each. In 2018, Svenson anticipates needing 10,000 CMCBs. The CMCBs would be produced in 80 batches of 125 each. The Minton Corporation has approached Svenson about supplying CMCBs to Svenson in 2018 at $300 per CMCB on whatever delivery schedule Svenson wants. Bs (from Print Done Jer future

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 Accounting

Authors: J. David Spiceland ,Wayne M. Thomas ,Don Herrmann

2nd Revised Edition

0071088385, 978-0071088381

More Books

Students also viewed these Accounting questions