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a). Compute the incremental cost to make with the incremental cost to buy. Remember the incremental cost to make includes the opportunity cost of the
a). Compute the incremental cost to make with the incremental cost to buy. Remember the incremental cost to make includes the opportunity cost of the foregone rent revenue.
b). Should Bacrometer continue to make part no. 566?
Bacrometer, Inc, makes part no. 566 on one of its production lines Each month Bacrometer makes 6.000 of part no. 566 at a variable cost of $4 per part. Bacrometer has been provided a bid for part no. 566 from another manufacturer that will make the part for $5 per part Bacrometer knows the production line could be rented to another manufacturer for $8,000 per month. Fixed costs associated with the production line will remain unchanged regardless of the company's decision. a. Compute the incrementalicost to make wieh he incremental cost to buy Remember the incremental cost to make includes the opportunity cost of the foregone rent revenue. b. Should Bacrometer continue to make part no. 566? 3 Answer is not complete Complete this question by entering your answers in the tabs below. Required A Required B Compute the incremental cost to make with the incremental cost to buy Remember the incremental cost to make includes the opportunity cost of the foregone rent revenue. Incremental cost to make 30,000 Incremental cost to buy 32.000 Bacrometer, Inc, makes part no. 566 on one of its production lines Each month Bacrometer makes 6.000 of part no. 566 at a variable cost of $4 per part. Bacrometer has been provided a bid for part no. 566 from another manufacturer that will make the part for $5 per part Bacrometer knows the production line could be rented to another manufacturer for $8,000 per month. Fixed costs associated with the production line will remain unchanged regardless of the company's decision. a. Compute the incrementalicost to make wieh he incremental cost to buy Remember the incremental cost to make includes the opportunity cost of the foregone rent revenue. b. Should Bacrometer continue to make part no. 566? 3 Answer is not complete Complete this question by entering your answers in the tabs below. Required A Required B Compute the incremental cost to make with the incremental cost to buy Remember the incremental cost to make includes the opportunity cost of the foregone rent revenue. Incremental cost to make 30,000 Incremental cost to buy 32.000Step by Step Solution
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