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Exercise 12-5 Culver Inc. has been man act nng its awn fin als r its curtain roos The company is currently operating a 100%, unit
Exercise 12-5 Culver Inc. has been man act nng its awn fin als r its curtain roos The company is currently operating a 100%, unit to make a pair of finials are $3. and $4.0, respectively. Normal production is 26,00o curtain rods per year. capac , and anable manu a uring erhead Is larged a production a he rate of 60% of direct labor cost. The direct mater als and direct abar cost per A supplier offers to make a pair of finlals at a price of $13.24 per unit. If Culver accepts the supplier's offer, all varable manufacturing costs will be eliminated, but the $46,900 of fixed manufacturing overhead currently belng charged to the finials will have to be absorbed by other products repare the incremen al ana y or e.g. (45).) he decisan to make r bu t e inials Round answers to 0 dernal places e q 25 lf amount decreases net Income then enter he amount using either negatv e s1grl preceding the number e q 45 or parentheses Net Income Make Buy Direct materials Direct labor Variable overhead casts Fixed manufacturing costs Purchase price Total annual cost Shauld Culver buy the finials? Y Culver should the tinials. VIDEO: APPLIED SKILLS Would your answer be different in previous part if the praductive capacity released by not making the finials could be used to produce income of $42,240 income would Click if you would like to show work for this question: Open Show Yux
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