Answered step by step
Verified Expert Solution
Question
1 Approved Answer
BuilLI EAR, Int, pru s limsuise manufactus e-Lar irai: at class : Curtimit Varihi: Liruttalara| friL Lire labor 610 variable whead 3LD Tallerie $1.000 Fixed
BuilLI EAR, Int, pru s limsuise manufactus e-Lar irai: at class : Curtimit Varihi: Liruttalara| friL Lire labor 610 variable whead 3LD Tallerie $1.000 Fixed costs: Depreciation of equipment $190 Depreciation of holdin Superiors saates Total totales coma $1.00 Totalt $2.900 The company received an atter from Biltel-Bars to produce the Insets tor $2,100 per unit and supply 950 mini-bars for the coming year's estimated production. It the company access this citer and shuts down production of this part of the bus neer, production workers and supervisors will be resigned to other areas. Assume that for the short-term decision-making process demonstrated in this problem, the company's to slabor costs direct labor and supervisor sales) wil remain the same the bar inserts are purchased The specialized equipment cannot be used and has no market value. However, the cosce occupied by the mini-bar production can be used by a ditterent production group that will lease it for $56.000 per year A. Calculate the diterential cost of il-bar insert. It an amount box does not require an entry, leave it blank Cost of Making Lust of thuying Differential cust yuu Har inserts Duu Har Inserts (Savinus) Variable costs Dit Preber Warishie overheat mm $ Fbed Costs Equipment dopredu.in trikiry ain Skvist Other Cost Swings Leased Coct of buying bar incerts 9 $ Total B. Should the many make or buy the mini-bar Insert? BuilLI EAR, Int, pru s limsuise manufactus e-Lar irai: at class : Curtimit Varihi: Liruttalara| friL Lire labor 610 variable whead 3LD Tallerie $1.000 Fixed costs: Depreciation of equipment $190 Depreciation of holdin Superiors saates Total totales coma $1.00 Totalt $2.900 The company received an atter from Biltel-Bars to produce the Insets tor $2,100 per unit and supply 950 mini-bars for the coming year's estimated production. It the company access this citer and shuts down production of this part of the bus neer, production workers and supervisors will be resigned to other areas. Assume that for the short-term decision-making process demonstrated in this problem, the company's to slabor costs direct labor and supervisor sales) wil remain the same the bar inserts are purchased The specialized equipment cannot be used and has no market value. However, the cosce occupied by the mini-bar production can be used by a ditterent production group that will lease it for $56.000 per year A. Calculate the diterential cost of il-bar insert. It an amount box does not require an entry, leave it blank Cost of Making Lust of thuying Differential cust yuu Har inserts Duu Har Inserts (Savinus) Variable costs Dit Preber Warishie overheat mm $ Fbed Costs Equipment dopredu.in trikiry ain Skvist Other Cost Swings Leased Coct of buying bar incerts 9 $ Total B. Should the many make or buy the mini-bar Insert
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started