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I really need help with this questions!!!!!!!!!!!!!!!!!! Excel Sheet Provided Question 1 (a to b) Marks only 5 marks Always start your answer in column
I really need help with this questions!!!!!!!!!!!!!!!!!!
Excel Sheet Provided
Question 1 (a to b) Marks only 5 marks Always start your answer in column B...COLUMN A IS FOR INSTRUCTOR USE ONLY Please put correct answer in the underlined space provided. ABC Company manufactures heaters and has capacity to produce 5,500 units. The budgeted costs for production of 5,000 units are as follows: Direct materials Direct labor Variable costs Fixed costs 10,000 hours $ $ $ $ 400,000 220,000 189,000 180,000 The company receives an offer from an outside supplier to manufacture the same quality of air conditorners for them. Purchase price per unit a) $ 165 Required: Compute the annual impact on the company's net income as a result of buying the air conditioner from the outside supplier. (3 Marks) When evaluating the offer to outsource the production of air conditioner, the company determines that it can rent its manufacturing space for: $ 50,000 b) With this new information, compute the annual impact on the company's net income as a result of buying the air conditioner from the outside supplier. (2 Marks) TotalStep by Step Solution
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