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Problem Brief: Green Lawn Corp manufactures a specialty part for use in the production of leaf blowers. The USA Lawn Company approached the controller with
Problem Brief: Green Lawn Corp manufactures a specialty part for use in the production of leaf blowers. The USA Lawn Company approached the controller with an offer to sell Green Lawn Corp 10,000 units of this specialty part for $33 each. USA Lawn provides equipment to the Fertilizer Division and, after discussion with the manager of the Fertilizer Division, Green Lawn Corp is confident that the quality of USA Lawn's products are acceptable. The total costs to make 10,000 units of the specialty part are provided in the table below. Should Green Lawn Corp continue to make the specialty part or should it accept USA Lawn's offer to buy the specialty part? By what amount is the choice more desirable? Total Cost to Make Make per Unit Direct Materials $60,000 $6.00 Direct Labor $150,000 $15.00 Variable Overhead $60,000 $6.00 Fixed Overhead $80,000 $8.00 Total $350,000.00 $35.00 Buy per Unit $2.00 $0.00 $0.00 $2.00 $4.00 Enter your answers here! Answer: Make Total Amount: Check Answers Prior Problem Move to Debrief
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