Boston Executive, Inc. Poduces erecutive limosires and currently manufactures the wint-bar inget at the costs Cost per Unit Vantable costs Direct material 3910 Direct labor 640 Variable overhead 210 Total variable costs $1.890 Trang 1 Depreciation of equipment $490 Depreciation of building 190 Supervisors salanes 300 Total fixed costs 3910 Total cost $2.870 The coTony receved an offer from Elite Min-Bars to produce the insats for $2,090 per unt and supply 900 mill-bars for the coming year's estimated production, the company accepts this offer and shuts down production of this part of the business, production workers and supervisors will be reassigned to other areas. Assume that for the shortterm decision-making proces demonstrated in this problem, the company's total labor costs (direct labor and supervisor salaries) will remain the same the bar inserts are purchased The specialized equipment cannot be used and has no market value. However, the space occupied by the mini-bar production can be used by a different production group that will tease e for SS5,000 per year. The specialized equipment cannot be used and has no market value. However, the space occupied by the mini-bar production can be used by a different production group that will lease 2 for $55,000 per year. A. Calculate the differential cost of mini-bar Insert. If an amount box does not require an entry leave blank Cost of Making Cost of Buying Differential Cost 900 Bar Inserts 900 Bar Inserts (Savings) Variable Costs Direct material Direct labor Variable overhead Fixed Costs Equipment depreciation Building depreciation Supervisor salaries mond Other Cost Savings Leased space Cast of buying bar inserts Total cost B. Should the company make or buy the mini-bar insert? Boston Executive, Inc. Poduces erecutive limosires and currently manufactures the wint-bar inget at the costs Cost per Unit Vantable costs Direct material 3910 Direct labor 640 Variable overhead 210 Total variable costs $1.890 Trang 1 Depreciation of equipment $490 Depreciation of building 190 Supervisors salanes 300 Total fixed costs 3910 Total cost $2.870 The coTony receved an offer from Elite Min-Bars to produce the insats for $2,090 per unt and supply 900 mill-bars for the coming year's estimated production, the company accepts this offer and shuts down production of this part of the business, production workers and supervisors will be reassigned to other areas. Assume that for the shortterm decision-making proces demonstrated in this problem, the company's total labor costs (direct labor and supervisor salaries) will remain the same the bar inserts are purchased The specialized equipment cannot be used and has no market value. However, the space occupied by the mini-bar production can be used by a different production group that will tease e for SS5,000 per year. The specialized equipment cannot be used and has no market value. However, the space occupied by the mini-bar production can be used by a different production group that will lease 2 for $55,000 per year. A. Calculate the differential cost of mini-bar Insert. If an amount box does not require an entry leave blank Cost of Making Cost of Buying Differential Cost 900 Bar Inserts 900 Bar Inserts (Savings) Variable Costs Direct material Direct labor Variable overhead Fixed Costs Equipment depreciation Building depreciation Supervisor salaries mond Other Cost Savings Leased space Cast of buying bar inserts Total cost B. Should the company make or buy the mini-bar insert
