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answer question 7-8, thank you. Unit Price ALPHA $120 BETA $80 Average cost per unit at 100,000 units Variable Cost per Unit: Manufacturing Direct Materials
answer question 7-8, thank you.
Unit Price ALPHA $120 BETA $80 Average cost per unit at 100,000 units Variable Cost per Unit: Manufacturing Direct Materials Direct Labor Variable manufacturing overhead Variable Selling expenses Total Variable Cost per Unit $30 $20 $7 $12 $69 $12 $15 $5 $8 $40 Traceable fixed manufacturing overhead Common fixed expenses (allocated on sales dollars) $16 $15 $18 $10 Total cost per unit $ 100 $68 The company can produce 100,000 of each product in the current year. 7. Assume that the company expects to produce and sell 85,000 Alphas during the current year. A supplier has offered to manufacture and deliver 85,000 Alphas at a price of $85 per unit. What is the financial advantage (disadvantage) of buying 85,000 units from the supplier instead of making the units? 8. Assume that the company expects to produce and sell 45,000 Alphas during the current year. A supplier has offered to manufacture and deliver 45,000 Alphas at a price of $75 per unit. What is the financial advantage (disadvantage) of buying 45,000 units from the supplier instead of making the units Step by Step Solution
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