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Answer and please explain how did you come up with the answers. The costs makes very high quality toy zoos. Each year it manufactures 59,000
Answer and please explain how did you come up with the answers.
The costs makes very high quality toy zoos. Each year it manufactures 59,000 plastic elephants for the z company elephant are as follows Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Tota cost per elephant An outside supplier has offered to sell Tarzan the 59,000 elephants it needs for $55 per elephant. If Tarzan accepts this offer, the facilities now being used to make the elephants could be rented out for $215,000 per year If the elephants were purchased from the outside supplier, $11 of the fixed manufacturing overhead cost per elephant would be avoidable. Required: increase or decrease, Part 1 (8 marks). If Tarzan decides to purchase the elephants from the supplier, will its profit and by how much? supplier charged Tarzan s elephant, marks). Calculate the missing from this sentence: lfthe 59,000 elephants from the supplier or Tarzan's income would be the same whether Tarzan purchased the Tarzan continued to manufacture the elephants. (Round your answer to 2 decimal places) Step by Step Solution
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