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Part 467 is used in one of Broce Corporation's products. The company's. Accounting Department reports the following costs of producing the 17,200 units of the
Part 467 is used in one of Broce Corporation's products. The company's. Accounting Department reports the following costs of producing the 17,200 units of the part that are needed every year: An outside supplier has oflered to make the part and sell it to the company for $3100 each. If this offer is accepted, the supervisor's salery and all of the variable costs, including direct labot, can be avouled. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general ovethead represents fixed costs of the entire compary if the outside supplier's offer were accepted, only $23,200 of these allocated generat overthead costs would be avoided. Required: a. Prepare a teport that shows the financial impact of buying part Us7 from the suppler rather than continuing to make it inside the company. b. Which alternative should the company choose? Complete this question by entering your answers in the tabs below. Prepace a report that shows the finanoal impact of buying part U67 from the suppler rather than continuing to make it inside the company
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