Question
I need help solving req 1 and 2 1) Cool board's accountants predict that purchasing the bindings from the outside supplier will enable the company
I need help solving req 1 and 2
1) Cool board's accountants predict that purchasing the bindings from the outside supplier will enable the company to avoid 2,200 of fixed overhead. Prepare an analysis to show whether cool baords should make or buy the bindings.
2) Tge facilities freed by purchasing bindings from the outside supplier can be used to manufacture another product that will contribute 2600 to profit. Total fixed costs will be the same as if Cool boards had produced the bindings. Sho which alternative makes the best use of cool boards facilities: (a) make bindings (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product
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