Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me with these managerial accounting questions, thanks so much. FIRST: X corp. currently buys a part it needs from Y LLC for $10.05

Please help me with these managerial accounting questions, thanks so much.

FIRST:

image text in transcribedimage text in transcribed
X corp. currently buys a part it needs from Y LLC for $10.05 per unit. As X has grown it has considered adding a production line in its own factory to produce the part instead. The production line would cost $338929 per year in xed costs. Running the line would consume $2.93 for materials and $1.44 for labor to make each unit. X pays $5000 per year to ship and inspect the parts bought from Y. If the part is made in house, X could avoid those costs. For the coming year, X expects to need 28783 of the parts. What is the differential prot of insourcing production of the part? (you can round to dollar) X Inc.. has xed costs of $3,800,000 and variable costs of $50 per unit. The rm's marketing department estimates that it faces the following demand schedule displaying the number of units it can sell at various prices: $130 72,000 $120 90,000 $110 106,000 $100 120,000 Question 1: Which price is optimal? There is an opportunity to change materials used in the production process. The new materials would add $6 per unit in variable cost but would simplify production in a way that would reduce xed costs by $520,000 and labor costs(variable) by $1 per unit. Question 2: Should the company switch to the new materials

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

Essentials Of Advanced Financial Accounting

Authors: Richard Baker

1st Edition

0078025648, 9780078025648

More Books

Students also viewed these Accounting questions

Question

Explain the process of Human Resource Planning.

Answered: 1 week ago

Question

1. Too understand personal motivation.

Answered: 1 week ago