Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Greens, Inc. (GI) manufactures golf-related equipment including goif balls. This year's expected production of golf balis is 100,000 packs (each consisting of four golf balls).

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Greens, Inc. (GI) manufactures golf-related equipment including goif balls. This year's expected production of golf balis is 100,000 packs (each consisting of four golf balls). Cost data are as follows: The full cost of one pack of golf balis is $3.76. G has recelved an offer from an outside supplier to supply any desired quantity of balls at a price of $380 per pack of four golf balls. The cost occounting deparment has provided the following information: a. The direct fixed manufacturing overhead is the cost of leasing the machine that stamps out the balis. The machine can produce a maximum of 500,000 balls per year. If the balis are bought, the machine will no longer be needed. b. No other costs will be affected. Required: 1. Prepare on analysis showing whether GI would be bettefoff making or buying the balls at a projected volume of 100,000 packs (400.000 goif balls), (Round "Per Unit" answers to 2 decimal places.) Required: 1. Prepare an analysis showing whether GI would be better off making or buying the balls at a projected volume of 100,000 packs ( 400,000 goif balls). (Round "Per Unit" answers to 2 decimal places.) 2-a. At what volume would GI be indifferent between making and buying? (Do not round intermediate calculations and round your final answer to nearest whole number.) 2-b. What does the indifference point indicate? (Do not round intermediate calculations and round your final answers to nearest whole number.) 3. Select the quantitative and/or qualitative factors that GI should consider before making the final decision. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Passibility of interruptions in supply. Current price and changes in price. Alternative use for facilities freed up Abitity to meintein quelity of tennis belis. Any labour or production issues that may hoppen. Change in management structure. Climetic conditions in area where plant is situated

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Prescription Audit And Client Satisfaction A Health Service Research Study Based On Outdoor Patients

Authors: Amitabha Chattopadhyay

1st Edition

3843355541, 978-3843355544

More Books

Students also viewed these Accounting questions

Question

assess the infl uence of national culture on the workplace

Answered: 1 week ago