Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Company A makes 41,000 units per year of a part it uses a Direct materials Pirect Labor to manufactures. Unit product is below Variable
Company A makes 41,000 units per year of a part it uses a Direct materials Pirect Labor to manufactures. Unit product is below Variable manufactoring overhead $11.80 22.90 1.50 Fixed year manufactoring overhead 25.30 unit product cost $61.50 the part An supplier has offered to sell the company. the parts for $47.80 per unit. All The contribution margin on this other product I would be $246,000 per year, if the company Accepts the offer, it no tinued $22.40 of the fixed manufacturing overhead Cost being applied to the part would be even if the part would be cut from outside supplier This fixed cast manufactoring overhead cost would he Applied to the company remaining products. What is the maximum Amount the company shald he willing to pay An outside supplier per unit for the part If the suppler commits to supplying All 41,000 Unity required each year. c) $45.10 per unit A) $61.50 per unit B) 6.00 per unit P) 67.50 per unit 08.211
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