Containers manufactures a variety of boxes used for packaging. Sales of its Model A20 box have increased significantly to a total of 500 comma 000

500,000 A20 boxes. Helmer

Helmer has enough existing production capacity to make all of the boxes it needs. The variable cost of making each A20 box is $ 0.78

$0.78. By outsourcing the manufacture of these A20?boxes, Helmer

Helmer can reduce its current fixed costs by $ 90 comma 000

$90,000. There is no alternative use for the factory space freed up through?outsourcing, so it will just remain idle.

What is the maximum Helmer

Helmer will pay per Model A20 box to outsource production of this?box?

Begin by identifying the basic formula that is used to determine the indifferent outsourcing cost per unit.

https/www.mathxl.com/Stud ACC241 Uses of Accounting Information II - Summer B 2019 bharat gupta & | 7/28/19 8:12 PM Homework: Chapter 8 Homework (required) Save Score: 0 of 1 pt |7 of 10 (7 complete) HW Score: 58.64%, 5.86 of 10 pts E8-30A (similar to) Question Help Helmer Containers manufactures a variety of boxes used for packaging. Sales of its Model A20 box have increased significantly to a total of 500,000 A20 boxes. Helmer has enough existing production capacity to make all of the boxes it needs. The variable cost of making each A20 box is $0.78. By outsourcing the manufacture of these A20 boxes, Helmer can reduce its current fixed costs by $90,000. There is no alternative use for the factory space freed up through outsourcing, so it will just remain idle. What is the maximum Helmer will pay per Model A20 box to outsource production of this box? Begin by identifying the basic formula that is used to determine the indifferent outsourcing cost per unit. Cost if making A20 boxes Cost if outsourcing A20 boxes Direct materials + Direct labor Direct materials + Direct labor + Variable costs Sales revenue - Fixed costs Sales revenue - Total costs Sales revenue - Variable costs Variable costs + Fixed costs Choose from any drop-down list and then click Check Answer. ? parts Clear All Final Check