q34 chap 7

q43 chap 7

Blossom Firm is considering Whether to outsource the manufacture of subcomponent JXY. The accounting department prowides the following cost information for manufacturing 12,000 units of subcomponent JXY per month. - Fixed overhesa includes 54,300 supervisor'salary International Firm aprees to supply Blossorn with 12000 units per month for tatal cost of $142.000 ir yubcoeiponent 1xy is outsolitced Prepare an incremental analysis for subcomponent JXY. (ff an omount reduces the incremental costs then enter with a negative sign preceding the number eg. 15,000 or parenthesis, e.s. (15,000). Whlle alternate approaches are possible, Irrelevant fixed costs should be Included in both options when solving this problem: Total monthly cost Cost of good sold Manufacturing overhead Direct inaterials Directlabour Cost of goot soldManctacturing overhead Finod overthesd Veriable werhead Opportunitycost Purchise perice $ 5 $ Blossom Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides the following cost information for manufacturing 12,000 units of subcomponent JXY per month. -Fimed overhaad ineludes 54,00 supervisor'ssalary outsourced, Blossom Wirbe able to increose the productionand ales of its final product by 1,180 imits per monith the product is sold outsourced Prepare an incremental analysis for subcomponent JXY. ff on omount reduces the incremental costs then enter with a negutive stgn preceding the number eg - 15,000 or parenthesk, eg. (15,000). While alternote approoches are possible, Inrelevant foxed costs should be Inchuded in both options when solvirg thls