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due in 10 mins please help Texan Marine Products {TMP} manufactures and sells various fixtures for boat cabins. One foxture uses a specialized htting that
due in 10 mins please help
Texan Marine Products \{TMP\} manufactures and sells various fixtures for boat cabins. One foxture uses a specialized htting that L not used in ary other TMP aroduct. The management of TMP has considered outsourcing the fitting for several years, but has nisver identified a suitabie supplier. TMP has coliected the folowine data on the cost of the fitting Poo Fittings, a kecal aute supplier, contacts TMP and telis it that because of the loss of one of Poo's customers, there is enourh capacity to produce up to 5.000 units of the fitting monthly. Poo has offered to sell TMPany quantity (up to 5,000 units monthly) at a price of $20 por fitting- If Pao supplies all of the 3,000 fittings currently produced by TMP. TMP will avoid all of the variable overhead associated with the fikting and otye thicd of the fxed averhead Management estimates that variabie overhead for the fitting is 54,80 per unit. Total fiwed overhead for the 3,000 units is 528,000 What is the effect on profit if TMP has Poo supply the 3,000 fittings Step by Step Solution
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