Question
Marty Motors Ind, a manufacturer of computer monitors, cumently produces a 19 nch LCD moniter The company's accounting department has reported the following annual costs
Marty Motors Ind, a manufacturer of computer monitors, cumently produces a 19 nch LCD moniter The company's accounting department has reported the following annual costs of producing the LCD montor internally Marty Monitors Annual Production Costs for 19-inch LCD Monitor Drect Materials Per Unit 10,000 Units $29.00 $290,000 Direct Labor $15.00 $150,000 Variable Overhead $9.00 $90.000 Production Supervisor's Salary $12.00 $120,000 Depreciation of LCD manufacturing equipment $10.00 $100,000 Alocated Fat Overhead $14.00 $140,000 Total Cost $89.00 $890,000 An external suppler has offered to pronde Marty Monitors 10,000 units of the same LCD monitor per year at a price of $50 each Abo consider the following information The LCD manufacturing equipment hn no sakage value and has no other use aside from producing the 19-inch LCD monitors, It cannot be sold The fixed overhead costs allocated to the LCD monitors are common to all items produced in the factory The production supervisor will take over duties in another department it the monitors are purchased from the external suppiter. If this is the case, his annual salary will drop to $10,000 Should the company continue manufacturing the monitors intemally or begin purchasing them from the extemal supplier Do not at dolur signs or comesas in the input box Boved att answers to 2 decimal aces Jenson Monitors Make or Buy Analysis Production Cost Per Unit Per Unit Differential Cost Make Buy Total Differential Cost (10,000 Unit Make Buy Deect Materials $25,00
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