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Frannle Fans currently manufactures celling fans that Include remotes to operate them. The current cost to manufacture 10,200 remotes is as follows: Frannle is approached
Frannle Fans currently manufactures celling fans that Include remotes to operate them. The current cost to manufacture 10,200 remotes is as follows: Frannle is approached by Lincoln Company, which offers to make the remotes for $18 per unit. Required: 1. Compute the difference in cost per unit between making and buying the remotes If none of the fixed costs can be avolded. What is the change in net Income, If Frannle Fans buys the remotes? 2. Compute the difference in cost per unit between making and buyling the remotes if $20,400 of the fixed costs can be avolded. What is the change in net income, If Frannle Fans buys the remotes? 3. What is the change in net income If fixed cost of $20,400 can be avolded and Frannle could rent out the factory space no longer in use for $20,400 ? Complete this question by entering your answers in the tabs below. Compute the difference in cost per unit between making and buying the remotes if none of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes
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