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Please help!! The Ayayai Company manufactures 1,355 units of a part that could be purchased from an outside supplier for $13 each. Ayayai's costs to
Please help!!
The Ayayai Company manufactures 1,355 units of a part that could be purchased from an outside supplier for $13 each. Ayayai's costs to manufacture each part are as follows: Direct materials Direct labor Variable manufacturing $3 overhead Fixed manufacturing overhead Total $18 All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses. (a) Calculate relevant cost to make. Relevent cost to make $ per unit (b) Should Ayayai continue to manufacture the part? LINK TO TEXT LINK TO VIDEO (c) Calculate net cost to buy if Ayayai leases the manufacturing facilities to another company for $6,055 per year Net cost to buy $ (d) Would your answer change if Ayayai could lease the manufacturing facilities to another company for $6,055 per yearStep by Step Solution
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