Lakeside Incorporated produces a product that currently sells for $39.60 per unit. Current production costs per unit include direct materials, $11; direct labor, $13; variable overhead, $5.50; and fixed overhead, $5.50. Product engineering has determined that a certain part of the product conversion process could be outsourced. Raw material costs would not be affected, but direct labor and variable overhead costs would be reduced by 30%. No other opportunity is currently feasible for unused production capacity. Required: a. What would be the net cost advantage or disadvantoge if Lakeview decided to outsource part of the conversion process at a cost of $4.40 per unit? Note: Do not round your intermediate calculations. Round your final answer to 2 decimal places. b. Should tokeside outsource part of the conversion process at a cost of $4.40 per unit? Lakeside Incorporated produces a product that currently sells for $39.60 per unit. Current production costs p materials, \$11; direct labor, \$13; variable overhead, \$5.50; and fixed overhead, \$5.50. Product engineering ha certain part of the product conversion process could be outsourced. Raw material costs would not be affecte variable overhead costs would be reduced by 30%. No other opportunity is currently feasible for unused pro Required: a. What would be the net cost advantage or disadvantage if Lakeview decided to outsource part of the conv of $4.40 per unit? Note: Do not round your intermediate calculations. Round your final answer to 2 decimal places. b. Should Lakeside outsource part of the conversion process at a cost of $4.40 per unit? Lakeside Incorporated produces a product that currently sells for $39.60 per unit. Current production costs per unit include direct materials, $11; direct labor, $13; variable overhead, $5.50; and fixed overhead, $5.50. Product engineering has determined that a certain part of the product conversion process could be outsourced. Raw material costs would not be affected, but direct labor and variable overhead costs would be reduced by 30%. No other opportunity is currently feasible for unused production capacity. Required: a. What would be the net cost advantage or disadvantoge if Lakeview decided to outsource part of the conversion process at a cost of $4.40 per unit? Note: Do not round your intermediate calculations. Round your final answer to 2 decimal places. b. Should tokeside outsource part of the conversion process at a cost of $4.40 per unit? Lakeside Incorporated produces a product that currently sells for $39.60 per unit. Current production costs p materials, \$11; direct labor, \$13; variable overhead, \$5.50; and fixed overhead, \$5.50. Product engineering ha certain part of the product conversion process could be outsourced. Raw material costs would not be affecte variable overhead costs would be reduced by 30%. No other opportunity is currently feasible for unused pro Required: a. What would be the net cost advantage or disadvantage if Lakeview decided to outsource part of the conv of $4.40 per unit? Note: Do not round your intermediate calculations. Round your final answer to 2 decimal places. b. Should Lakeside outsource part of the conversion process at a cost of $4.40 per unit
