need help with wrong answers
eBook Show Me How Calculator Structuring a Make-or-Buy Problem fresh foods, a large restaurant chain, needs to determine if it would be cheaper to produce 5,000 units of its main food ingredient for use in its restaurants or to purchase them from an out de supplier for $12 each. Cost information on internal production includes the following Total Cost Unit Cast Direct materials 525,000 $5.00 Direct labor 3.00 15,000 7.500 1.50 11,500 230 Vanable manufacturing overhead Vanable marketing overhead Freed plant overhead Total 6.00 30,000 599,000 517:50 Tredved will continue whether the ingredient is produced internally or externally No additional costs of purching will be incurred beyood the purchase price required, round Your newers to the nearest when Required 1. What the wives for Fresh Foods 7. to the vant cost(s) of internal production and of external purchase At the above 1. Which is cost effective by how much to cont when give 2.500 voor Boswers to the nearest whole number Required: 1. What are the state for Fresh Food? Make the ingredient in house or buy it externally 2. Let the relevant costs of internal production and of external purchase All of the above 3. Whichternative more cost fective and by how much total cost when giving your answer 2.500 X 4. No me that 20% of the fixed overhead can be avoided the ingredients purchased tray wickative is more cost effective and by how much (use total cost when you wer) Buy 3,500 X gagenow.com/ilm/takeAssignment/takeAssignmentMain.do?inprogress true eBook Slow Me How Calculator Sales revenue 5400,000 $200,000 $300,000 $900,000 Less: Variable expenses 225.000 120,000 250,000 595,000 Contribution targin $175,000 $80,000 $50,000 $305,000 Les direct foxed expenses Machine rent (5.000) (20,000) (30,000) (55,000) Supervision (15,000) (10,000) (5,000) (30,000) Depreciation 35,000) (10,000) 125,000) (70,000) Segment margin $120,000 5.40,000 5.(10,000) $150,000 Hickory's management is deciding whether to keep or drop the parquet product line, Hickory parquet flooring product line has a contribution margin of $50,000 (sales of $300,000 less tntal vunable costs of $250,000). All variable costs are relevant Relevant fixed costs associated with this line include of parquet's machine rent and all of parquet's supervision salanes. In addition, stume that dropping the parent product line would reduce sales of the strip line by 29and sales of the plank Inby 20% All other information remains the same Required: 1. the parquet product line dropped, what is the contribution margin for the strip line? 133,000 X For the plank line 64,000 2. Whichternative (eep or drop the parcut product line) now more cost effective and by how much Kep by 73,000 X eBook Show Me How Calculator Structuring a Make-or-Buy Problem fresh foods, a large restaurant chain, needs to determine if it would be cheaper to produce 5,000 units of its main food ingredient for use in its restaurants or to purchase them from an out de supplier for $12 each. Cost information on internal production includes the following Total Cost Unit Cast Direct materials 525,000 $5.00 Direct labor 3.00 15,000 7.500 1.50 11,500 230 Vanable manufacturing overhead Vanable marketing overhead Freed plant overhead Total 6.00 30,000 599,000 517:50 Tredved will continue whether the ingredient is produced internally or externally No additional costs of purching will be incurred beyood the purchase price required, round Your newers to the nearest when Required 1. What the wives for Fresh Foods 7. to the vant cost(s) of internal production and of external purchase At the above 1. Which is cost effective by how much to cont when give 2.500 voor Boswers to the nearest whole number Required: 1. What are the state for Fresh Food? Make the ingredient in house or buy it externally 2. Let the relevant costs of internal production and of external purchase All of the above 3. Whichternative more cost fective and by how much total cost when giving your answer 2.500 X 4. No me that 20% of the fixed overhead can be avoided the ingredients purchased tray wickative is more cost effective and by how much (use total cost when you wer) Buy 3,500 X gagenow.com/ilm/takeAssignment/takeAssignmentMain.do?inprogress true eBook Slow Me How Calculator Sales revenue 5400,000 $200,000 $300,000 $900,000 Less: Variable expenses 225.000 120,000 250,000 595,000 Contribution targin $175,000 $80,000 $50,000 $305,000 Les direct foxed expenses Machine rent (5.000) (20,000) (30,000) (55,000) Supervision (15,000) (10,000) (5,000) (30,000) Depreciation 35,000) (10,000) 125,000) (70,000) Segment margin $120,000 5.40,000 5.(10,000) $150,000 Hickory's management is deciding whether to keep or drop the parquet product line, Hickory parquet flooring product line has a contribution margin of $50,000 (sales of $300,000 less tntal vunable costs of $250,000). All variable costs are relevant Relevant fixed costs associated with this line include of parquet's machine rent and all of parquet's supervision salanes. In addition, stume that dropping the parent product line would reduce sales of the strip line by 29and sales of the plank Inby 20% All other information remains the same Required: 1. the parquet product line dropped, what is the contribution margin for the strip line? 133,000 X For the plank line 64,000 2. Whichternative (eep or drop the parcut product line) now more cost effective and by how much Kep by 73,000 X
