Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Electric Scooter Co. makes motorized scooters for city commuters. The scooters can be charged using a regular household plug, and the batterie:s hold their charge
Electric Scooter Co. makes motorized scooters for city commuters. The scooters can be charged using a regular household plug, and the batterie:s hold their charge for 24 hours. The manufacturing plant is currently operating at 70% capacity. The plant manager is considering manufacturing headlights for the scooters, which are currently being produced by an outside company and purchased by Electric Scooter for $11 each. Electric Scooter has the equipment and the workforce to produce the headlights. The engineers have suggested a variable cost of $3 in direct labour and $4 in direct materials. The plant overhead rate is 200% of direct labour dollars, and 40% of the overhead is fixed cost. Requirea: 1-a.Calculate the incremental profit to producing the one headlight. (Do noft round intermediate calculation and round your final answer to 2 decimal places.) ncremen rofit headlight 1-b.Should Electric Scooter make the headlights in-house? O Yes No
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