ACC $202$

Chapter $7$ Open$-$Ended Assignment

Note: Please put your answers only in the section below the Bold Red sentence at the end of the Required section below.

Sandboard Inc. currently produces sandboards. Management is interested in outsourcing production of sandboards to a reputable manufacturing company that can supply the sandboards for $$220$ per unit. Sandboard Inc. incurs the following annual production costs to produce $7,000$ sandboards internally:

$\backslash$table$[[,,$Total Annual$],[,$Per,Cost at$],[,$Unit,$7,000$ units$],[$Variable production costs:$],[$Direct materials,$140,980,000],[$Direct labor,$$,49,000],[$Manufacturing overhead,$17,119,000],[$Fixed production costs:$],[$Factory building and equipment lease,,$200,000],[$Factory insurance,,$62,000],[$Production supervisor salary,,$70,000],[$Total roduction costs,,$$,1,480,000$