Jackie Cafe has produced 4,800 units of Sandwich per month, which is not the company's primary function The following is cost information related to Sandwich manufacturing Now, CEO of Jackie Cafe, Hannah, is considering outsourcing all of sandwich manufacturing Sandwich manufacture, BASTA, offers to Jackie Cafe to sell Sandwich for $8 per units Direct materials 12,000 Direct Labor 8,000 Variable manufacturing Overhead 9,000 Fixed manufacturing Overhead 16,000 Total manufacturing cost 45,000 Number of products 4,800 Requirement 1 (1 5 points) If none of fixed costs are avoidable, is it reasonable to accept BASTA's offer Support your answer Requirement 2 (1 5 points) If some of fixed costs ($12,000) are avoidable by outsourcing, is it reasonable to accept BASTA's offer Support your answer Requirement 3 (2 points) If Jackie Cafe can use its idle facilities to manufacture another product that will contribute $5,000 to operating income, is it reasonable to accept BASTA's offer Support your answer ($12,000 of Fixed costs are avoidable) Jackie Cafe has produced 4,800 units of Sandwich per month, which is not the company's primary function The following is cost information related to Sandwich manufacturing Now, CEO of Jackie Cafe, Hannah, is considering outsourcing all of sandwich manufacturing Sandwich manufacture, BASTA, offers to Jackie Cafe to sell Sandwich for $8 per units Direct materials Direct Labor Variable manufacturing Overhead Fixed manufacturing Overhead Total manufacturing cost Number of products 12,000 8,000 9,000 16,000 45,000 4,800 Requirement 1 (1 5 points) If none of fixed costs are avoidable, is it reasonable to accept BASTA's offer Support your answer Requirement 2 (1 5 points) If some of fixed costs ($12,000) are avoidable by outsourcing, is it reasonable to accept BASTA's offer Support your answer Requirement 3 (2 points) If Jackie Cafe can use its idle facilities to manufacture another product that will contribute S5,000 to operating income, is it reasonable to accept BASTA's offer Support your answer ($12,000 of Fixed costs are avoidable)

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Posted on Oct 01, 2024

Jackie Cafe has produced 4,800 units of Sandwich per month, which is not the company's primary function. The following is cost information related to Sandwich

Direct materials	12,000
Direct Labor	8,000
Variable manufacturing Overhead	9,000
Fixed manufacturing Overhead	16,000
Total manufacturing cost	45,000
Number of products	4,800

Requirement 1 (1.5 points): If none of fixed costs are avoidable, is it reasonable to accept BASTA's offer? Support your answer.

Requirement 2 (1.5 points): If some of fixed costs ($12,000) are avoidable by outsourcing, is it reasonable to accept BASTA's offer? Support your answer.

Requirement 3 (2 points): If Jackie Cafe can use its idle facilities to manufacture another product that will contribute $5,000 to operating income, is it reasonable to accept BASTA's offer? Support your answer ($12,000 of Fixed costs are avoidable).

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Jackie Cafe has produced 4,800 units of Sandwich per month, which is not the company's primary function. The following is cost information related to Sandwich manufacturing. Now, CEO of Jackie Cafe, Hannah, is considering outsourcing all of sandwich manufacturing Sandwich manufacture, BASTA, offers to Jackie Cafe to sell Sandwich for $8 per units Direct materials Direct Labor Variable manufacturing Overhead Fixed manufacturing Overhead Total manufacturing cost Number of products 12,000 8,000 9,000 16,000 45,000 4,800 Requirement 1 (1.5 points): If none of fixed costs are avoidable, is it reasonable to accept BASTA's offer? Support your answer. Requirement 2 (1.5 points): If some of fixed costs ($12,000) are avoidable by outsourcing, is it reasonable to accept BASTA's offer? Support your answer Requirement 3 (2 points): If Jackie Cafe can use its idle facilities to manufacture another product that will contribute S5,000 to operating income, is it reasonable to accept BASTA's offer? Support your answer ($12,000 of Fixed costs are avoidable)