Question
Csokve792 Corporation makes 46,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is
Csokve792 Corporation makes 46,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost (ID#73083) $14.30 23.90 3.00 28.30 $69.50 An outside supplier has offered to sell to Csokve792 all of these parts it needs for $55.80 a unit If Csokve792 accepts this offer, the facilities now being used to make the part could be used to make more units of another product that is in high demand. The additional contribution margin on this other product would be $368,000 per year If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However $24.90 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier This fixed manufacturing overhead cost would be applied to the Csokve792 company's remaining products (Q) What is the maximum amount that Csokve792 Corporation should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 46,000 units required each year? (Round your intermediate calculations to 2 decimal places.)
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