Procong Enable Qua 4 2 MON Mctatain Corporation is presently making part USB ut is used...
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Procong Enable Qua 4 2 MON Mctatain Corporation is presently making part USB ut is used in one of is products. A total of 18.000 units of the part are produced and used every year The company's Accounting Department reports the ing costs of producing the part at this level of activity Direct materials Direct labor Verlable overhead Spervisor's salary Depreciation of special equipment Allocated general overb Permit 53.50 14.90 $1.99 $5.40 55:40 $5.70 An outside supplier has offered to produce and sell the part to the company for $23.80 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The specialment used to make the part was purchased many years ago and has no salvage value or other use. The atocated general overhead represents wed costs of the entire company, none of which would be avoided if the part were purchased instead of produced ally In addition to the facts given above, assume that the space used to produce parte could be used to make more of one of the company's other products, generating an additional segment margin of 161,800 per year for that product. What would be the financial advantage disadvantage) of buying part U08 bon the outside supplier and using the freed space to make more of the other product? Maple Choice O O O 141800 $2,400 60000) 504,000 Procong Enable Qua 4 2 MON Mctatain Corporation is presently making part USB ut is used in one of is products. A total of 18.000 units of the part are produced and used every year The company's Accounting Department reports the ing costs of producing the part at this level of activity Direct materials Direct labor Verlable overhead Spervisor's salary Depreciation of special equipment Allocated general overb Permit 53.50 14.90 $1.99 $5.40 55:40 $5.70 An outside supplier has offered to produce and sell the part to the company for $23.80 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The specialment used to make the part was purchased many years ago and has no salvage value or other use. The atocated general overhead represents wed costs of the entire company, none of which would be avoided if the part were purchased instead of produced ally In addition to the facts given above, assume that the space used to produce parte could be used to make more of one of the company's other products, generating an additional segment margin of 161,800 per year for that product. What would be the financial advantage disadvantage) of buying part U08 bon the outside supplier and using the freed space to make more of the other product? Maple Choice O O O 141800 $2,400 60000) 504,000
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