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Q Wynham Stereos produces and sells speakers and CD players. The following information about the costs related to the systems has been collected. $ $
Q Wynham Stereos produces and sells speakers and CD players. The following information about the costs related to the systems has been collected. $ $ Selling price per unit 164 Production costs per unit Total fixed overhead 302,000 Direct materials 48 Direct labour 70 Variable overhead 28 Wynham Stereos normally produces 22,000 of these systems per year. The managers have recently received an offer from a Mexican company to produce these systems for $152 each. The managers estimate that $211,400 of Wynham Stereos' fixed costs could be eliminated if it accepted the offer. Required: Perform a quantitative analysis for the decision. Important: . For any amounts, please don't include the dollar sign ($) or any thousands separators - i.e., $12,000 should be written as 12000. If you think the amount in a cell should be 0, type 0 - don't leave that cell empty. For any amounts, please don't include the - (minus) sign in front of the amounts and also don't place the amounts in parentheses. Make Buy $ Direct materials Direct labour Variable overhead Fixed overhead Purchase price Total costs
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