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please complete first question. I included other question I already did because it has info that will make it easier for you to solve the
please complete first question. I included other question I already did because it has info that will make it easier for you to solve the one I got incorrect.
Required Information [The following information applies to the questions displayed below] Harbortown Marlne Products (HMP) manufactures and sells varlous fixtures for boat cabins. One fixture uses a speclalized fitting that is not used in any other HMP product. The management of HMP has considered outsourcing the fitting for several years but has never identified a sultable supplier. HMP has collected the following data on the cost of the fitting: Rivard Fittings, a local auto supplier, contacts HMP and tells them that because of the loss of one of Rivard's customers, there is enough capacity to produce up to 5,000 units of the fitting monthly. Rivard has offered to sell HMP any quantity (up to 5,000 units monthly) at a price of $22.70 per fitting. If RIvard supplies all of the 3,360 fittings currently produced by HMP, HMP will avold all of the varlable overhead assoclated with the fitting and one-third of the fixed overhead. Management estimates that varlable overhead for the fitting is $5.70 per unit. arbortown management is concerned about future changes in materlal prices arising from volatility in the commoditles market. equired: t what unit costs for materlals would HMP be just Indifferent between making and buying the 3,360 units of the fitting If all other costs emain as predicted? (Enter your answer in 2 decimal palces.) Answer is complete but not entirely correct. Required information [The following informotion opplies to the questions disployed below] Harbortown Marine Products (HMP) manufactures and sells various fixtures for boat cabins. One fixture uses a specialized fitting thot is not used in any other HMP product. The manegement of HMP hos considered outsourcing the fitting for several years but has never identified e suiteble supplier. HMP has collected the following doto on the cost of the fitting: Riverd Fittings, o local outo supplier, contects HMP and tells them that becouse of the loss of one of Rivord's customers, there is enough copacity to produce up to 5,000 units of the fitting monthly. Rivard hos offered to sell HMP ony quartity (up to 5.000 units monthly) ot s price of $22.70 per fitting. If Rivord supplies all of the 3,360 fittings currently produced by HMP. HMP will avoid oll of the vorioble overheod ossocisted with the fitting and one-third of the fixed overheod. Manegement estimates that voriable overheod for the fitting is $5.70 per unit. Required: a. Prepore o schedule thet shows the differentisi costs. b. Should HMP continue to make the fittings or buy them from Rivard Fittings? Answer is complete and correct. Complete this question by entering your answers in the tabs belowStep by Step Solution
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