Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

OOOO (0) Question 1 6 points Marik Company manufactured units of a component part that is used in its product. The following information is available:

image text in transcribed

image text in transcribed

OOOO (0) Question 1 6 points Marik Company manufactured units of a component part that is used in its product. The following information is available: Sales Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total costs Net Income 10 Another company has offered to sell the same component part to the company for $35 per unit. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not 12 be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, 13 Marik Company has the possibility to use the factory equipment to produce another product which is estimated to have a contribution of SO 15 Instructions 1. Prepare an incremental analysis report for Marik Company which can serve as informational input into this make or buy decision. 2. What is an opportunity cost and why should the managers consider it when making insourcing -outsourcing decisions? MacBook Air 0 1 Question 1 6 points 2 Marik Company manufactured 104,633,00 units of a component part that is used in its product. The following information is available: Sales $4,237,636,500 Direct materials 2,301,926,000 Direct labor 523,165,000 Variable manufacturing overhead Fixed manufacturing overhead 920,770,400 Total costs 3,745,861,400 Net Income 491,775,100 10 Another company has offered to sell the same component part to the company for $35 per unit 11 The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not 12 be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, 13 Marik Company has the possibility to use the factory equipment to produce another product which is estimated to have a contribution of 14 1,046, 330,00 Instructions 16 1. Prepare an incremental analysis report for Marik Company which can serve as informational input into this make or buy decision 2. What is an opportunity cost and why should the managers consider it when making insourcing outsourcing decisions? OOOO (0) Question 1 6 points Marik Company manufactured units of a component part that is used in its product. The following information is available: Sales Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total costs Net Income 10 Another company has offered to sell the same component part to the company for $35 per unit. The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not 12 be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, 13 Marik Company has the possibility to use the factory equipment to produce another product which is estimated to have a contribution of SO 15 Instructions 1. Prepare an incremental analysis report for Marik Company which can serve as informational input into this make or buy decision. 2. What is an opportunity cost and why should the managers consider it when making insourcing -outsourcing decisions? MacBook Air 0 1 Question 1 6 points 2 Marik Company manufactured 104,633,00 units of a component part that is used in its product. The following information is available: Sales $4,237,636,500 Direct materials 2,301,926,000 Direct labor 523,165,000 Variable manufacturing overhead Fixed manufacturing overhead 920,770,400 Total costs 3,745,861,400 Net Income 491,775,100 10 Another company has offered to sell the same component part to the company for $35 per unit 11 The fixed manufacturing overhead consists mainly of depreciation on the equipment used to manufacture the part and would not 12 be reduced if the component part was purchased from the outside firm. If the component part is purchased from the outside firm, 13 Marik Company has the possibility to use the factory equipment to produce another product which is estimated to have a contribution of 14 1,046, 330,00 Instructions 16 1. Prepare an incremental analysis report for Marik Company which can serve as informational input into this make or buy decision 2. What is an opportunity cost and why should the managers consider it when making insourcing outsourcing decisions

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Becker CPA Exam Final Review Auditing

Authors: Becker

1st Edition

1943628521, 978-1943628520

More Books

Students also viewed these Accounting questions