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Bena Martinez is a managerial accountant at Paibec Corporation. Paibec is under intense cost competition, and Martinez was asked to evaluate whether Pabec should continue
Bena Martinez is a managerial accountant at Paibec Corporation. Paibec is under intense cost competition, and Martinez was asked to evaluate whether Pabec should continue to manufacture part HT-RF or purchase it from Marley Company in 2022. Marley had submitted a bid to supply the 38,000 MT-R units that Paibec needs for 2022 at a price of $16.20 each From 2021 plant records and interviews with Janice Liu, the plant manager, Martinez gathered the following information regarding Pabec's costs to manufacture 35,000 units of MT. RF in 2021 $210,000 112.000 79,000 Direct materials Direct labor Plant space rental fed Equipment lease loved Other overhead Variable 35,000 Fixed 110,250 134,750 $681,000 Total also told her that TIF was not purchased from Marley, direct material and direct labor costs per unit were more likely to be higher in 2022 by 8% and respectively HT-RT was purchased from Marley, $10,000 of the fixed overhead costs could be served If MT RF was purchased from Marie, plant space will not have to be rented, and equipment will not have to be leased, but it will cost $8,000 and 4,000, respectively, to terminate the two contracts Martiner estimated that 38,000 units of HT-RF would be needed in 2022 REQUIRED (ROUND ALL VARIABLE COSTS PER UNIT TO TWO DECIMAL PLACES 1 IF MT. was purchased from Marley in 2022, what would be the effect on Paibec's profits? (Note: the buy costs are less than the make costs, enter the difference as a positive number if the make costs are less than the buy costs, enter the difference as a negative number Read the note about whether the difference should be entered as a positive number or a negative number Sana Arnar Incorrect Tries 2/5 Previous Tries MWMMW
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