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Not yet answered Marked out of 3.00 FFlag question Oat Treats manufactures various types of cereal bars featuring oats. Simmons Cereal Company has approached
Not yet answered Marked out of 3.00 FFlag question Oat Treats manufactures various types of cereal bars featuring oats. Simmons Cereal Company has approached Oat Treats with a proposal to sell the company its top selling oat cereal bar at a price of $27,500 for 20,000 bars. The costs shown are associated with production of 20,000 oat bars currently. Direct material Direct labor Manufacturing overhead Total $14,000 6,000 8,000 $28,000 The manufacturing overhead consists of $3,000 of variable costs with the balance being allocated to fixed costs. Should Oat Treats make or buy the oat bars? NOTE: Enter amounts rounded to the nearest whole dollar. Total relevant costs Cost to buy Recommendation Effect of buying rather than making 6 CA in profit Type here to search
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