Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assuming that the company to which you outsource charges you $4.65 per unit, based on the results above, at what production volume is the break-even

image text in transcribed

Assuming that the company to which you outsource charges you $4.65 per unit, based on the results above, at what production volume is the break-even point?

Note:

  • Do not use the $ sign in your answer. For example, if there is a saving of $99, the answer is 99
  • Use a negative sign before the amount to show that it is a loss. For example, if there is a loss of $99, the answer is -99. If there is a saving of $99, then the answer is 99
Question Completion Status QUESTIONS As the CEO of Hahoopian clothing company you want to decide whether to manufacture a particular product or sure its production. Your business analysis team develops a spreadsheet model and uses ces What analysis to analyre "Savings due to Outsourcing based on different scenarios. The results below are provided to you as the CEO Peres Outsourcing Co NUE So 4 and Co $ 25,000.00 21.00 $24.00 $1.000 Material.com $ 2.15 MO S. S10 000 $14.000 Labor 11/06 $10.00 $15.000 312.000 perunt 2.00 514,500 2.500 $19.000 $100 $10,000 $11.000 $23.000 $17.000 $11.00 Model $5.000 151.000 $7,500 $22.500 $15.000 10 . Production Volume $4.000 $12.000 $13,000 14.000 51,00d 10 500 11.500 $11,00 0010000 11 Totale con $ 135,000.00 BETOO 521.000 5.000 11.00 20000 $20.500 $7.000 A 100 5700 13 Total Fed Coat $ 25,000.00 ESKO $20,000 95.000 110.000 14 Total Material Cout $ 64,500.00 The even contenta $450 15 Total Labor Cost $ 60.000.00 The The first met chiment the production wolume 16 Total Cost $ 149,500.00 Left current production wolume top row amounts represent Outuring Coupe 17 Right compresenterte fue to outsourcing The amount in the represents due to ton I Savings due to outsourcing 316500.00 19 Assuming that you outsource the production of 90,000 units and the company to which you outsource charges you 54.80 per unit, based on the results above, how much will be the savings (or loss) due to outsourcing? Note: . Do not use the sign in your answer. For example, if there is a saving of $99, the answer is 99 Use a negative sign before the amount to show that it is a loss. For example, if there is a loss of $99, the answer is -99. If there is a saving of $99, then the answer is 99

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

A New Auditors Guide To Planning Performing And Presenting IT Audits

Authors: Nelson Gibb, CIA, CISA, CISSP, Divakar Jain, CA, CPA, Amitesh Joshi, Surekha Muddamsetti, Sarabjot Singh

1st Edition

0894136852, 978-0894136856

More Books

Students also viewed these Accounting questions

Question

LO 6-7 How to do basic usability testing on your documents

Answered: 1 week ago