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Assume that Sunshine State reports the following relevant costs to make or buy a 17.5 oz. bottles for its Juice Cocktails: E: (Click the icon
Assume that Sunshine State reports the following relevant costs to make or buy a 17.5 oz. bottles for its Juice Cocktails: E: (Click the icon to view the costs.) Suppose Sunshine State can use the released facilities in another manufacturing activity that makes a contribution to profits of $50,000 or can rent them out for $25,000. Requirement 1. Prepare a schedule that compares the four alternative courses of action. Which alternative would yield the lowest net cost? (Use parentheses or a minus when entering cost amounts. Leave unused cells blank.) Requirement 1. Prepare a schedule that compares the four alternative courses of action. Which alternative would yield the lowest net cost? (Use parentheses or a minus when entering cost amounts. Leave unused cells blank.) Buy and Buy and Use Buy and Leave Facilities for Rent Out Data table Make Facilities idle Other Activities Facilities - X Make Buy Total cost for Cost per Total cost for Cost per 1,100.000 Bottles Bottle 1,100,000 Bottles Bottle Purchase cost $ 319,000 $ 0.290 Net relevant costs Direct materials $ 0.095 104,500 $ 49,500 Sunshine State should This is the alternative that yields the lowest net cost. Direct labor 0.045 Variable factory overhead Avoidable annual fixed factory overhead 79,200 65.000 0.072 0.059 buy the bottles and leave the facilities idle. $ 298,200 $ 0.271 $ Total relevant costs 319,000 $ 0.290 buy the bottles and use the facilities for other activities. buy the bottles and rent out the facilities. Print Done make the bottles Assume that Sunshine State reports the following relevant costs to make or buy a 17.5 oz. bottles for its Juice Cocktails: E: (Click the icon to view the costs.) Suppose Sunshine State can use the released facilities in another manufacturing activity that makes a contribution to profits of $50,000 or can rent them out for $25,000. Requirement 1. Prepare a schedule that compares the four alternative courses of action. Which alternative would yield the lowest net cost? (Use parentheses or a minus when entering cost amounts. Leave unused cells blank.) Requirement 1. Prepare a schedule that compares the four alternative courses of action. Which alternative would yield the lowest net cost? (Use parentheses or a minus when entering cost amounts. Leave unused cells blank.) Buy and Buy and Use Buy and Leave Facilities for Rent Out Data table Make Facilities idle Other Activities Facilities - X Make Buy Total cost for Cost per Total cost for Cost per 1,100.000 Bottles Bottle 1,100,000 Bottles Bottle Purchase cost $ 319,000 $ 0.290 Net relevant costs Direct materials $ 0.095 104,500 $ 49,500 Sunshine State should This is the alternative that yields the lowest net cost. Direct labor 0.045 Variable factory overhead Avoidable annual fixed factory overhead 79,200 65.000 0.072 0.059 buy the bottles and leave the facilities idle. $ 298,200 $ 0.271 $ Total relevant costs 319,000 $ 0.290 buy the bottles and use the facilities for other activities. buy the bottles and rent out the facilities. Print Done make the bottles
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