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Question 1: Please write in email to your boss mike, at Moon Appliance advice what he should do, If no additional fixed costs would be

Question 1:

Please write in email to your boss mike, at Moon Appliance advice what he should do, If no additional fixed costs would be incurred, what should Moon Appliance do?

Show your logic, think about other factors such as what external supplier to use or a business relationship with Nadal Pars

Moon Appliance manufactures (your employer) a variety of appliances which all use Part B89. Currently, Moon Appliance Manufactures Part B89 itself. It has been producing 9,000 units of Part B89 annually. The annual costs of producing Part B89 at the level of 9,000 units include:

Direct materials

$3.00

Direct labor

$8.00

Variable manufacturing overhead

$4.00

Fixed manufacturing overhead

$3.00

Total cost

$18.00

All of the fixed manufacturing overhead costs would continue whether Part B89 is made internally or purchased from an outside supplier. Assume Moon Appliance can purchase 9,000 units of the part from the Nadal Parts Company for $20.00 each, and the facilities currently used to make the part could be used to manufacture 7,000 units of another product that would have a $6 per unit contribution margin.

Write email..

Hi Jack,..

Question 2:

Write an email to your boss mike, on whys the company at Moon Appliance should consider ways to act implement sustainability in Moon Appliance business practices and good social economic practices. Provide emails and how these practices good improve the overall image by the customer of the company.

Write email..

Hi Jack,..

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