NEED REQUIREMENT 1, 2 AND 3

REQUIREMENT 2:

Assume Chenango Industries is able to rent out all its idle capacity for $82,000 per month. If Chenango Industries decides to purchase the 10 units from Scott Supply, Chenangos monthly cost for JR63 would increase (or decrease) by what amount?

Increase by

per month

REQUIREMENT 3:

Assume that Chenango Industries does not wish to commit to a rental agreement but could use its idle capacity to manufacture another product that would contribute $166,000 per month. If Chenangos management elects to manufacture JR63 in order to maintain quality control, what is the net amount of Chenangos cost from using the space to manufacture part JR63?

Net cost of using limited capacity to produce part JR63

Check my work 4 Industries uses 10 units of part JR63 each month in the production of radar equipment. The cost of manufacturing one unit f JR63 is the following: Direct matarial direct-material cogt aidling (20e o Dt r of direct 1abor) Ttal renufecturion aat 16 000 Book components on the basis of their cost. This is a separate charge in addition to manufacturing overhead, Chenango Industries' annual manufacturing overhead budget is one-third variable and two-thirds fixed. Scott Supply, one of Chenango Industries' reliable vendors, has offered to supply part number JR63 at a unit price of $52,000. Piat Required: Defarancas 1. If Chenango Industries purchases the JR63 units from Scott, the capacity Chenango Industries used to manufacture these parts would be idle. Should Chenango Industries decide decrease) by what amount? , ASs the 10 unite from Scott SunChansms meu for ine Ee ior decosel us udbet amount? purchase the parts from Scott, the unit cost of JR63 would increase (or to . Assume that Chenango Industrles does not wish to commit to a rental agreement but could use Its Idle capacity another product that would contribute $166,000 per month. If Chenango's management elects to manufacture JR63 in order to maintain quality control, what is the net amount manufacture Chenango's cost from using the space to manufacture part JR63? Complete this question by entering your answers in the tabs below. Required 1 Required: Required 3 narts would he idle Should Chenango Tedustries decide to ourchase the narts from Scott. the unit.cost of 1863 would increa se (ar decrease) by what amount? ncrease by per unit Required 2 Required 1