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Essex manufactures part 4A that is currently used in one of its products. The cost per unit of this part is: Direct materials Direct labour
Essex manufactures part 4A that is currently used in one of its products. The cost per unit of this part is: Direct materials Direct labour Variable overhead Depreciation of special equip. Supervisor's salary General factory overhead Total cost per unit $ 9 5 1 3 2 10 $ 30 The special equipment used to manufacture part 4A has no resale value. The total amount of general factory overhead, which is allocated on the basis of direct labour hours, would be unaffected by this decision. The $30 total cost per unit is based on 20,000 parts produced each year. An outside supplier has offered to provide the 20.000 parts at a cost of $25 per part. Should we accept the supplier's offer? A A managedeng at white co wants to machine with replace 80,000 a new, more Shicient machine New machine List Price $ 904000 Snual variable eapneses Loco machine & Expected life in years original cost $72,000 Remaining book Value 60,000 Disposal value now 15,000 Snual caviable expenses 100.000 Remaining life in years B A manager at white co wante to replace an old machine with a new m same chart White's sales are $ 200,000 per year Fixed expenses, other than depreciation, are $70,000 per year. Should the manger purchase the new machine? Cose the relevent cost Analysis for your Ans
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