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A manufacturuer produces an industrial mouse trap that has become the commercial janitorial industry standard. The mouse traps have a base plate that the manufacturer
| A manufacturuer produces an industrial mouse trap that has become the commercial janitorial industry | |||||||||
| standard. The mouse traps have a base plate that the manufacturer has considered outsourcing. | |||||||||
| On a per-unit basis, the manufacturer incurs the following expenses: | |||||||||
| $7 of direct materials | |||||||||
| $4 of direct labor | |||||||||
| $1 of variable overhead | |||||||||
| $4 of supervisory salary | |||||||||
| $3 of equipment depreciation | |||||||||
| $5 of allocated general overhead | |||||||||
| The subcontractor has proposed to sell the manufacturer 10,000 base plates for $17 per unity. If the | |||||||||
| manufacturer purchases the base plates, the supervisor will be laid off. | |||||||||
| $10,000 more | |||||||||
| $50,000 more | |||||||||
| $20,000 less | |||||||||
| $70,000 less | |||||||||
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Accounting For Decision Making And Control
Authors: Jerold Zimmerman
10th Edition
1259969495, 978-1259969492
