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Please show the math get the answer a disadvantage of 26,000. The yellow is the answer but I'm not sure how to get there with
Please show the math get the answer a disadvantage of 26,000. The yellow is the answer but I'm not sure how to get there with the math
this was the the information give,in yellow is the answer to the question. I was given the answers but don't understand how to calculate the answer
3. Pander Corporation makes 10,000 units of part XY4 each year. This part is used in one of the company's products. The company's Accounting Department reports the following costs of producing the part at this level of activity: An outside supplier has offered to make and sell the part to the company for $19.50 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $2,000 of these allocated general overhead costs would be avoided. In addition, the space used to produce part XY4 would be used to make more of one of the company's other products, generating an additional segment margin of $10,000 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part XY4 from the outside supplier should be: Circle One: Advantage Disadvantage Amount: $26,000> Step by Step Solution
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