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Lakeside Inc. produces a product that currently sells for $75.60 per unit. Current production cost per un incude det direct labor, $23. variable overhead, $10.50,
Lakeside Inc. produces a product that currently sells for $75.60 per unit. Current production cost per un incude det direct labor, $23. variable overhead, $10.50, and foed overhead $1050. Product engineering has determined that scrumpor product conversion process could be outsourced Raw material costs would not be died, but director costs would be reduced by 30%. No other opportunity is currently feasible for unused production capacity 0.78 points Required: e. What would be the net cost advantage or disadvantage if Lakeview decided to outsource part of the conversion process o $8.40 per unit? (Round your final answer to 2 decimal places.) f References b. Should Lakeside outsource part of the conversion process at a cost of $8.40 per unite O Yes NO Lakeside Inc. is considering whether to enter the market to produce and sell Product X The market selling pace for established at $580 per unit, and Lakeside requires a profit margin of 20% on product lines 0.78 points Required: Calculate the target cost per unit Lakeside must achieve to produce Product X Target cost per unit ebook References
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