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a. Should King Make or Buy Part X? Show and label your support calculations. b. Identify one important qualitative (non-financial) factor companies should consider when
a. Should King Make or Buy Part X? Show and label your support calculations.
b. Identify one important qualitative (non-financial) factor companies should consider when making decisions about outsourcing work to other companies?
**Please help with this problem. Can you please show your work so I can understand the answer. Thank you!!**
18. (7 points) King Corp., uses 10,000 units of Part X in its production cycle. King can make or buy Part X. If King buys the part from Utica Company, King will save 40% of fixed costs applied. The remaining fixed costs will be idle and cannot be used elsewhere. King's manufacturing costs Part X is as follows: Per Direct materials Direct labor Variable overhead Fixed overhead applied King Manufacturing Cost Unit $ 6 24 12 15 $ 57 Cost to buy the part from Utica Company $ 53
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