Question
please answer these two quetions asap 1. You make component X in-house at a unit cost of $80/unit, which consists of direct materials $60/unit, direct
please answer these two quetions asap
1. You make component X in-house at a unit cost of $80/unit, which consists of direct materials $60/unit, direct labor $5/unit, variable overhead $5/unit, and fixed overhead $10/unit. An outside supplier offered to manufacture component X for you at a wholesale price of $60 per unit. You need 1,000 units of X per month. If you outsource the production of X, how much will your profit change in the short term?
2. When a company is facing excess demand (i.e., demand exceeds the available capacity), which of the following is a reasonable course of action to consider?
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