Question
A hamburger restaurant currently makes the buns for its hamburgers. It uses 100,000 buns annually, and the costs to make the bun per unit are
A hamburger restaurant currently makes the buns for its hamburgers. It uses 100,000 buns annually, and the costs to make the bun per unit are as follows:
DL cost TL0.21 Variable overhead TL0.14
DM cost TL0.28 Fixed overhead TL0.49
A bakery has offered to sell the restaurant buns for TL0.77 each. If the buns are purchased, 25% of the fixed overhead could be avoided. If the offer is accepted, what is the financial impact on the restaurant?
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Information Technology Auditing
Authors: James A. Hall
4th edition
1133949886, 978-1305445154, 1305445155, 978-1133949886
