Frannie Fans currently manufactures ceiling fans that include remotes to operate them. The current cost to manufacture 10,080 remotes is as follows: 65.520 Direct materials Direct labor Variable overhead Fixed overhead Total 5124 55,440 30, 240 $ 50,400 $ 201,609 Frannie is approached by Lincoln Company which offers to make the remotes for $18 per unit. Required: 1. Compute the difference in cost between making and buying the remotes If none of the fixed costs can be avoided. What is the change in net income? 2. Compute the difference in cost between making and buying the remotes if $20,160 of the fixed costs can be avoided. What is the change in net income? 3. What is the change in net income if fixed cost of $20,160 can be avoided and Frannie could rent out the factory space no longer in use for $20,160? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the difference in cost between making and buying the remotes if none of the fixed costs can be avoided. What is the change in net income? Prev 1 of 4 !!! Next > Frannie is approached by Lincoln Company which offers to make the remotes for $18 per unit Required: 1. Compute the difference in cost between making and buying the remotes if none of the fixed costs can be avoide change in net income? 2. Compute the difference in cost between making and buying the remotes if $20,160 of the fixed costs can be avoi change in net income? 3. What is the change in net income if fixed cost of $20,160 can be avoided and Frannie could rent out the factory si use for $20,160? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the difference in cost between making and buying the remotes if none of the fixed costs can be avoided. What i change in net income? per unit Difference in cost Change in net inco Required 2 > JU, 210 U UVelledo Total 50,400 $ 201,600 Frannie is approached by Lincoln Company which offers to make the remotes for $18 per unit. Required: 1. Compute the difference in cost between making and buying the remotes if none of the fixed co change in net income? 2. Compute the difference in cost between making and buying the remotes if $20,160 of the fixed change in net income? 3. What is the change in net income if fixed cost of $20,160 can be avoided and Frannie could ren use for $20,160? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the difference in cost between making and buying the remotes if $20,160 of the fixed costs can the change in net income? per unit Difference in cost Change in net income Saved Variable overhead Fixed overhead Total $ 30,240 $ 50,400 $ 201,600 Frannie is approached by Lincoln Company which offers to make the remotes for $18 per unit Required: 1. Compute the difference in cost between making and buying the remotes if none of the fixed costs can change in net income? 2. Compute the difference in cost between making and buying the remotes if $20,160 of the fixed costs change in net income? 3. What is the change in net income if fixed cost of $20,160 can be avoided and Frannie could rent out the use for $20,160? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the change in net income if fixed cost of $20,160 can be avoided and Frannie could rent out the factory longer in use for $20,160? Change in net income
