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Elena Martinez is a managerial accountant at Palbec Corporation. Palbec is under intense cost competition, and Martinez was asked to evaluate whether Paiber should continue
Elena Martinez is a managerial accountant at Palbec Corporation. Palbec is under intense cost competition, and Martinez was asked to evaluate whether Paiber should continue to manufacture part HT-For purchase it from Marley Company in 2022. Marley had submitted a bid to supply the 38,000 MT-RF units that Paibec needs for 2022 at a price of $15.60 each. From 2021 plant records and interviews with Janice Liu, the plant manager, Martinez gathered the following information regarding Falbec's costs to manufacture 35,000 units of MT-RF in 2021: Direct materials Direct labor Plant space rental [fixed] Equipment lease [fixed] Other overhead Variable $238,000 161,000 91,000 32,000 Liu also told her that Fixed Total 98,000 147,000 $767,000 if MT-RF was not purchased from Marley, direct material and direct labor costs per unit were more likely to be higher in 2022 by 7% and 5%, respectively, if MT-RF was purchased from Marley, $10,000 of the fixed overhead costs could be saved. if MT-RF was purchased from Marley, plant space will not have to be rented, and equipment will not have to be leased, but it will cost $8,000 and $4,000, respectively, to terminate the two contracts Martinez estimated that 38,000 units of MT-RF would be needed in 2022. REQUIRED [ROUND ALL VARIABLE COSTS PER UNIT TO TWO DECIMAL PLACES.] 2f MT-RF was purchased from Marley in 2022, what would be the effect on Palbec's profits? [Note: if the buy costs are less than the make costs, enter the difference as a positive number, the make costs a less than the buy costs, enter the difference as a negative number] Meganferences what is marked as NEW Mark NEW pasts no longer ne
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