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please help with the unfinished chart. The Wharton 2ny produces gas grils. This year's expected production is 25,000 units.Currently Wharton makes the side burners for
please help with the unfinished chart.
The Wharton 2ny produces gas grils. This year's expected production is 25,000 units.Currently Wharton makes the side burners for its gnills Eachgri ncludes two side bumers. Whatons management accountant reperts the following costs for making the 50,000 burners Wharton has receved an offer from an outside vendor to supply any number of intometion is available: (Click to view the information) Read the gequrements bumers Wharton requires at $8.75 per bumer. The following addtionsl Click to view the information) Requirement 1. Assume that if Wharton purchases the buners from the outside vendor, the fecility where the bumers are currently made will remain idle. On the basis of financial considerations alone, shoukl Wharton accept the outside venders offer at the antic pated volume of 50,000 bumers? Show your calculations. If a box is not used in the table, leave the box empty do not enter a zero) Make Buy Direct materials Direct manufacturing labor Variable manufacturing overhead 130,000 47,500 6,000 10000 Inspection, setup, materials handling Machine rent Purchase cost Total relevent costs On the basis of financial considerations alone, should Wharton accept the outside vendor's offer at the anticipated volume of 50,000 burners? Wharton should not accept the outside vendor's offer at the anticipated volume of 50,000 bumers. 418500 437.500 Requirement 2. For this question, assume that if the burners are purchased outside, the facilities where the bumers are currently made will be used to upgrade the grills by adding arotisserie attachment. (Note: Each grill contains two burners and one rotisserie attachment.)As a consequence, the selling price of grills will be raised by 824. The vanable cost per unit of the upgrade would be 821, and additional tooling costs of75,000 would be incurred. On the basis of financial considerations alone, should Wharton make or buy the bumers, assuming hat 25.000 grills are produced (and sold)? Show your caculations. (Enter any deductions with a parentheses or a minus sign If a box is not used in the table, leave the box empty, do not enter a zeroj Make Buy Direct materials Direct manufacturing laber Variable manfecturing overhead cetup, materials ing Purchase cost Additional tooling costs excess revenues over oosts from upgrade Total relevant costsStep by Step Solution
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