Question
Jackson Co must decide whether to make or buy some of its components. The variable costs of producing 98000 electrical cords for its floor lamps
Jackson Co must decide whether to make or buy some of its components. The variable costs of producing 98000 electrical cords for its floor lamps are $22 per unit. The fixed costs associated with making the cords is $499000. Instead of making the cords, the company has the opportunity to buy the cords at $24 per unit. However, 30% of the fixed costs will remain. Prepare a differential analysis showing whether the company should make or buy the electrical cords. Round all answers to the nearest whole unit and whole dollar. Enter negative numbers with a minus sign. Enter zeros where appropriate.
| Make or Buy | ||||
|---|---|---|---|---|
| Make | Buy | Differential | ||
| Variable Cost | $ | $ | $ | |
| Fixed Cost | $ | $ | $ | |
| Total Cost | $ | $ | $ | |
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Auditing Cases An Interactive Learning Approach
Authors: Mark S Beasley, Frank A. Buckless, Steven M. Glover, Douglas F Prawitt
7th Edition
0134421825, 9780134421827
