Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

art 1 of 2 ts -Book erences Required information PR 2-58 (Algo) Variable and Fixed Costs; Make or Buy a Component (LO 2-8, 2-10)

image text in transcribedimage text in transcribed

art 1 of 2 ts -Book erences Required information PR 2-58 (Algo) Variable and Fixed Costs; Make or Buy a Component (LO 2-8, 2-10) [The following information applies to the questions displayed below.] Hoboken Industries currently manufactures 42,000 units of part MR24 each month for use in production of several of its products. The facilities now used to produce part MR24 have a fixed monthly cost of $210,000 and a capacity to produce 90,000 units per month. If the company were to buy part MR24 from an outside supplier, the facilities would be idle, but its fixed costs would continue at 40 percent of their present amount. The variable production costs of part MR24 are $10 per unit. PR 2-58 (Algo) Part 1: If Hoboken Industries continues to use... Required: 1. If Hoboken Industries continues to use 42,000 units of part MR24 each month, it would realize a net benefit by purchasing part MR24 from an outside supplier only if the supplier's unit price is less than what amount? Amount Required information PR 2-58 (Algo) Variable and Fixed Costs; Make or Buy a Component (LO 2-8, 2-10) [The following information applies to the questions displayed below.] Hoboken Industries currently manufactures 42,000 units of part MR24 each month for use in production of several of its products. The facilities now used to produce part MR24 have a fixed monthly cost of $210,000 and a capacity to produce 90,000 units per month. If the company were to buy part MR24 from an outside supplier, the facilities would be idle, but its fixed costs would continue at 40 percent of their present amount. The variable production costs of part MR24 are $10 per unit. PR 2-58 (Algo) Part 2: If Hoboken Industries is able to obtain part MR24... 2. If Hoboken Industries is able to obtain part MR24 from an outside supplier at a unit purchase price of $12, what is the monthly usage at which it will be indifferent between purchasing and making part MR24? Monthly usage units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Comparative international accounting

Authors: Christopher nobes, Robert parker

9th Edition

273703579, 978-0273703570

More Books

Students also viewed these Accounting questions

Question

If a persons income is $6,000, how much does he pay in taxes?

Answered: 1 week ago