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all of the necessary parts for its product, including all of the electronic circuits. The company sells 22,000 units of its product per year. An
all of the necessary parts for its product, including all of the electronic circuits. The company sells 22,000 units of its product per year. An outside supplier has offered to sell electronic circuits to the company for a cost of $35 per unit. To evaluate this offer, the company has gathered the following information relating t- own cost of producing the electronic circuits internally: 22,000 Units Per per Unit Year $15 $330,000 8 176,000 3 66,000 3+ 66,000 6 132,000 $35 $770,000 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost W 00 *One-third supervisory salary, two-thirds depreciation of special equipment (no resale value). Suppose that if the electronic circuits were purchased the division supervisor position could be eliminate Fived manufact no all of the necessary parts for its product, including all of the electronic circuits. The company sells 22,000 units of its product per year. An outside supplier has offered to sell electronic circuits to the company for a cost of $35 per unit. To evaluate this offer, the company has gathered the following information relating t- own cost of producing the electronic circuits internally: 22,000 Units Per per Unit Year $15 $330,000 8 176,000 3 66,000 3+ 66,000 6 132,000 $35 $770,000 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost W 00 *One-third supervisory salary, two-thirds depreciation of special equipment (no resale value). Suppose that if the electronic circuits were purchased the division supervisor position could be eliminate Fived manufact no
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