chpt 23 qu 2

The managoment of filoassm Manudacturing Compare is trying to docide whathar to eontinue manidacturing a eart se ta burit fram an outaida nuppliar. The part ealled Cisco is a camporsnt of the companv/s finhed prodyet. The followin infarmatian was collacted trom tha accountina recerts and production data far the vaar andina Oecamber a1, a022. 17,900 units of CisCO were preduced in tha Machinint Departmant. 2. Variable manufachurine costs applicabla ta the produetion of cach ClSCO bnit ware dirwet material 5450 . direct laber 5400 ind iract labor $040, weilities $0.55. 3. Foxad manulacturieg cesta apelicable to the praduction of CisCO were All variable mahufacturingand di wact foad costs wil be sliminatea 4ClCCO la burchabed Allocated casts will not bu diminatad if CiSCO is purchased So ifCisCO is purchased, tha fuxad manufectuning conts a tocated a ClicO will have to be aboorbsd by othar production dibartments. 4. The lovest euatetion far 7,900 Clsco unis from a sugplis is 372,249 5. IfCLCO units are porchased, fraight and ingpsction costa wieg d be 50.34 Acr unit and ressiving costs totaling 51260 seryear would be incurrad by the Machining Oegartmsit pownthese (497)