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I got partial credit but I cant figure out what I did wrong We have Decision to MAKE the FRAMES that go onto our Bikes
I got partial credit but I cant figure out what I did wrong
We have Decision to MAKE the FRAMES that go onto our Bikes or BUY the Frames from an outside Business. We will use a Regular Monthly Average to Compare the Costs and Benefits for our Decision. The Choice is to take a MAKE or BUY the Frames that are put onto our Bikes. The Costs and Benefits Related to MAKING the FRAMES are as Follows: 1. The Monthly Average Production of FRAMES is 400 Frames. 2. Direct Material Costs are $100.00 per Frame 3. Direct Labor Costs are $150.00 per Frame 4. Variable MOH Costs are $30.00 per Frame 5. Avoidable Fixed Costs are $25,000 per month 6. UN-Avoidable Fixed Costs are $40,000 per month. The Costs and Benefits Related to BUYING the Frames from another Business, Outsourcing are as follows: 1. The Cost to BUY the Frames are $400.00 for Each Frame. 2. A Portion of the Factory Facility that would become Empty can be Rented out to Another Business for $30,000 Income per Month. QUESTIONS Show your Answers as a Number Only Rounded to the Nearest Dollar unless otherwise NOTED. NO Symbols such as Dollar Signs, Commas or Percents. Show Any Negative Number in Parens as follows = (100) 1. Compute the Total NET Relevant (Cost) or Benefit to MAKE the FRAMES = 137000 = Show your Answer as a Number = Rounded to the Nearest Dollar. No Dollar Signs, commas, or decimals. 2. Compute the Total NET Relevant (Cost) or Benefit to BUY the FRAMES 130000 = Show your Answer as a Number = Step by Step Solution
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