FILL OUT DATA IN CHART

1. What was your decision for Assignment 1? Support it with data.
2. What was your decision for Assignment 2? Support it with data.
3. Considering other non-financial issues would you change your decision, and wh

STACHLER COMPANY - A MAKE OR BUY DECISION Complete all YELLOW cells Stachler Company manufactured 6,000 units of a component part at a small factory in Homer, Michigan, a small town 100 miles West of Detroit. Stachler has been building component parts at the Homer Plant since the 1960's. The component part is shipped to Stachler's Assembly Plant in Northville and is used in its product that is sold at Costco and on Amazon. When the component part was originally designed in 1962 it was a simple mechanism made of steel and plastic. However, over the years a significant amount of computer technology has been designed into the part, and it has become signicantly more complex to build. This has resulted in some quality problems over the past five years. The Plant Manager of the Homer Plant is Sean Stachler, the grandson of the Steven Stachler, the founder of Stachler Company. Sean and his family live in Homer and Sean is active in the community, serving on the school board. Costs to produce the component part in Homer are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $5.80 per part $10.00 per part $1.00 per part 20.000 $ 80.000 Another company has offered to sell the same component part to the company for $20 per unit. A large portion of the the fixed manufacturing overhead consists of depreciation on the equipment used to manufacture the part and would not be reduced if the component part was purchased from the outside firm. ASSIGNMENT 1 - PREPARE THE ANALYSIS AND DETERMINE IF STACHLER SHOULD CONTINUE TO MAKE THE COMPONENT PART, OR BUY IT FROM AN OUTSIDE COMPANY Make Buy Increase (Decrease) Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Purchase price Total annual cost Make or Buy? (put an "X" in the cell) ASSIGNMENT 2 - A MEETING HAS BEEN SCHEDULED TO DISCUSS YOUR DECISION. AT THAT MEETING AN ENGINEER MAKES A SUGGESTION. SHE HAS DETERMINED THAT IF THE COMPANY BUYS THE COMPONENT, THE HOMER MACHINERY COULD BE USED TO BUILD A PRODUCT THAT THE COMPANY COULD SELL AT WALMART. THE NEW PRODUCT WOULD HAVE A CONTRIBUTION MARGIN OF $22,000 AND WOULD NOT REQUIRE ANY ADDITIONAL FIXED COSTS. PREPARE THE REVISED ANALYSIS Make Buy Increase (Decrease) Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Purchase price Opportunity Cost Total annual cost Make or Buy? (put an "X" in the cell)