Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Philly Pretzel Company produces 1,000 boxes of specialty pretzels. The cost of box of pretzels is given below. Direct materials $8 Direct labor 12 Variable

Philly Pretzel Company produces 1,000 boxes of specialty pretzels. The cost of box of pretzels is given below. Direct materials $8 Direct labor 12 Variable overhead 9 Fixed overhead 14 An outside supplier has offered to produce the pretzels for $20 per box. Philly can reduce the fixe overhead by 20% if it outsources the production of the pretzels. How many total dollars will Phill Pretzel Company save if it accepts the offer? State answer in numbers, no commas, no decimals, no dollar signs.
image text in transcribed
Philly Pretzel Company produces 1,000 boxes of specialty pretzels. The cost of box of pretzels is given below. Direct materials $8 Direct labor 12 Variable otverhead 9 Fixed overhead 14 An outside supplier has offered to produce the pretzels for $20 per box. Philly can reduce the fix overhead by 20% if it outsources the production of the pretzels. How many total dollars will Phil Pretzel Company save if it accepts the offer? State answer in numbers, no commas, no decimals, no dollar signs

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

Students also viewed these Accounting questions