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c-d? The Swifty Company manufactures 5,400 units of a part that could be purchased from an outside supplier for $14 each. Swifty's costs to manufacture
c-d?
The Swifty Company manufactures 5,400 units of a part that could be purchased from an outside supplier for $14 each. Swifty's costs to manufacture each part are as follows: $3 2 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total 5 9 $19 All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses. (a-b) Your answer is correct. (a) Calculate relevant cost to make. Relevent cost to make $ 10 per unit (b) Should Swifty continue to manufacture the part? Yes (c-d) (c) If Swifty could lease the manufacturing facilities to another company for $25,400 per year, what would be the net total cost to outsource production of the part? Net cost to buy $ (d) Should Swifty outsource production of the part given the opportunity to lease the facilities? e Textbook and Media Save for Later Attempts: 0 of 3 used SubmitStep by Step Solution
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