Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please show work and make it clear on what your answering Score: 0 of 3 pts E8-29A (similar to) 5 of 6 (1 complete) River
please show work and make it clear on what your answering
Score: 0 of 3 pts E8-29A (similar to) 5 of 6 (1 complete) River Enterprises manufactures one of the components used to assemble its main company product Specialty Products, Inc., has offered to make the component at a cost of $13.20 per unit. Pover Enterprises' current cost is $18.25 per unit of the component, based on the 125,000 components that River Enterprises currently produces Read the recements This cum ca Click the None of River En new product w Requirement 1. River Enterprises outsources the manufacturing of the componert, will operating income increase or decrease? By how much? (Enter a V" for any ze blas Ube incremental Analysis Make Outsource Outsourcing Decision Component Component Difference Tot.com 125.000.com Data Table Direct marial per unit Direct labor per unit Variatile malaring and unit 55 750 HO 1060 Question Help This current cost per unit is based on the following calculations: Click the icon to view the information) None of River Enterprises' fixed costs will be eliminated if the component is outsourced. However, the freed capacity could be used to build a new product. This new product would be expected to generate $29,000 of contribution margin per year for any zero balances. Use a minus sign or parentheses in the Difference column when the cost to make exceeds the cost to buy.) 5.75 750 200 300 5 15.25 VA 5 of 6 Score: 0 of 3 pts E8-29A (similar to) Renters maactures one of the components used to assemble its main company product Specialty Products, Inc. has offered to make the componenta con $13.20 per unit Pover Enterprises current cost is $1825 por unit of the component based on the 125,000 components that River Eres cury produce Poquirumem 1. Prver Enterprises outlouces the manufacturing of the componert, will operating income ncrease or decrease? By how much? (Enter a more for any Incremental Analyvis Outsource Otoring Decision Component Component Difference Make Posts To 16.600 cm Data Table Overia per unit Direct labor per Variable manufacturing over per unit Fancluing overhead perni Total maching costs per 575 750 2.00 200 egy Print Done 1080- ace' esc e U DI 0 1 2 # 3 - % 5 6 & 7 9 3 e r u Q a S d 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