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Question 1: SnakeLog makes Leather Bags which are used in one of its high end products the Gold perfume Unit costs for Direct Material was
Question 1: SnakeLog makes Leather Bags which are used in one of its high end products "the Gold perfume Unit costs for Direct Material was $55.00, Direct Labor was $9.00 and Variable cost was $6.00 the unit fixed overhead cost based on production of 40,000 Gold perfume per year, was 22.00. Who That Company has offered to make the Gold perfume for SnakeLog Company for the cost of $70.00. SnakeLog can lease the ideal factory (if chose to accept the offer) to a noncompetitive vendor for $870,000. (1) Based on the information provide, should SnakeLog accept the offer from Who That Company? Question II: A company manufactures two products. Each unit of product X requires 10 machine hours and each unit of product Y requires 4 machine hours. The company's productive capacity is limited to 180,000 machine hours. Each unit of product X sells for $15 and has variable costs of $7. Each unit of product Y sells for $8 and has variable costs of $3. If the company can sell all that it produces of both products, what should the sales mix be
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