Answered step by step
Verified Expert Solution
Question
1 Approved Answer
JACES 20 Direct materials $30,400 Variable overhead $39,520 Direct labour 42.560 Fixed overhead 58,368 Instead of making the switches at an average cost of $2.81
JACES 20 Direct materials $30,400 Variable overhead $39,520 Direct labour 42.560 Fixed overhead 58,368 Instead of making the switches at an average cost of $2.81 ($170,848 60,000), the company has an opportunity to buy the switches at $2.61 per unit. If the company purchases the switches, all the variable costs and one-third of the forced costs will be eliminated Prepare an incremental analysis showing whether the company should make or buy the switches (Round per unit answers to 2 decimal places, a... 15.25. If an amount reduces the net income then enter with a negative sign preceding the number e.9. -15,000 or parenthesis, e.g. (18,000). tudy Net Income Increase (Decrease) Per Unit Make Buy Number of units 0800 . Variable manufacturing costs 1.05 1124010 1124010 Fixed manufacturing Cou 0 0.96 50360 Purchase orice 261 Total annual cost 170848 The company should the components
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started