Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help!!! QUESTION 2 Sarah makes cookies. She normally produces 10,000 cookies a month and incurs the following costs: direct material $0.05 per cookie, direct
Please help!!!
QUESTION 2 Sarah makes cookies. She normally produces 10,000 cookies a month and incurs the following costs: direct material $0.05 per cookie, direct labor $0.01 per cookie, variable overhead $0.08 per cookie, and fixed overhead of $3,000. Thus, the average total cost per cookie is $0.44. A supplier has offered to produce her cookies for her for $0.30 each. Sarah thinks $1,000 of her fixed overhead can be avoided if she accepts the offer. How much will Sarah's income change (positive number for increase, negative for decrease, and don't use dollar signs) if she accepts the offer? QUESTION 3 [same info, different question] Sarah makes cookies. She normally produces 10,000 cookies a month and incurs the following costs: direct material $0.05 per cookie, direct labor $0.01 per cookie, variable overhead $0.08 per cookie, and fixed overhead of $3,000. Thus, the average total cost per cookie is $0.44. A supplier has offered to produce her cookies for her for $0.30 each. Sarah thinks $1,000 of her fixed overhead can be avoided if she accepts the offer. At what price would Sarah be indifferent to the offer (she could either accept or reject the offer)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started