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journal entries and explanation on the calculation with the requirements Requirement For Manchester to achieve an overall savings of $15,000, the amount of relevant costs
journal entries and explanation on the calculation with the requirements
Requirement For Manchester to achieve an overall savings of $15,000, the amount of relevant costs that would have to be saved by using the released facilities in the manufacture of Part No. 575 would be which of the following: (a) $60,000, (b) $105,000, (c) $135,000 or (d) $150,000 ? Show your calculations. What other factors might Manchester consider before outsourcing to Acre? 2. The Manchester Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 15,000 units of Part No. 498 is as follows: (Click to see the manufacturing cost per unit.) Read part 2s Begin by selecting the labels to calculate the effect on operating income and then enter in the supporting calculations. Data table The Acre Company has offered to sell 15,000 units of Part No. 498 to Manchester for $64 per unit. Manchester will make the decision to buy the part from Acre if there is an overall savings of at least $15,000 for Manchester. If Manchester accepts Acre's offer, $12 per unit of the fixed overhead allocated would be eliminated. Furthermore, Manchester has determined that the released facilities Calculator could be used to save relevant costs in the manufacture of Part No. 575
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