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answer it as soon as posible BORM 358 Corporation manufactures a variety of parts for use in its product. The company has always produced all
answer it as soon as posible BORM 358 Corporation manufactures a variety of parts for use in its product. The company has always produced all of the necessary parts forts product, including all of the electronic circuits. The company sells 14,000 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 to its own cost of producing the electronic circuits internally 14,000 Unita Per per Unit Year Direct materiale $ 14 $196,000 Direct labor 10 140,000 Variable manufacturing over head 4 56,000 Tixed manufacturing overhead, 84,000 traceable Fixed manufacturing overhead. 126,000 allocated Total cost 0 43 $602,000 6 9 "One-third supervisory say, two-thirds depreciation of special equipment (no resale value) Suppose that if the electronic circuits were purchased the division supervisor position could be eliminated Fired manufacturing overhond will be allocated to other products made by the company. Also, the company could use the freed production capacity to launch a new product. The segment margin of the new product would be $140,000 per year Given this new assumption how much would be the financial advantage of buying $4.000 electronic creults from the outside supplier? Murple Choice 0 $90.000 $90,000 $42.000 O O $112,000 $70,000
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