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Chenango Industries uses 1 5 units of part JR 6 3 each month in the production of radar equipment. The cost of manufacturing one unit
Chenango Industries uses units of part JR each month in the production of radar equipment. The cost of manufacturing one unit of JR is the following:
Material handiling represents the direct variable costs of the Recelving Department that are applied to direct materials and purchased components on the basis of their cost. This is a separate charge in addition to manufacturing overhead. Chenango Industries' annual manufacturing overhead budget is onethird varlable and twothirds fixed. Scott Supply, one of Chenango Industries' rellable vendors, has offered to supply part number JR at a unit price of $
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If Chenango Industrles purchases the JR units from Scott, the capacity Chenango Industries used to manufacture these parts would be Idle. Should Chenango Industries decide to purchase the parts from Scott, the unit cost of JR would increase or decrease by what amount?
Assume Chenango Industries is able to rent out all its idle capacity for $ per month. If Chenango Industries decides to purchase the units from Scott Supply, Chenango's monthly cost for JR would increase or decrease by what amount?
Assume that Chenango Industries does not wish to commit to a rental agreement but could use its idle capacity to manufacture another product that would contribute $ per month. If Chenango's management elects to manufacture JR in order to maintain quality control, what is the net amount of Chenango's cost from using the space to manufacture part JR
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If Chenango Industries purchases the JR units from Scott, the capacity Chenango Industries used to manufacture these parts would be idle. Should Chenango Industries decide to purchase the parts from Scott, the unit cost of JR would increase or decrease by what amount?
per unit
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