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Question 17 2 pts The Doors Company needs 20,000 units of Part X each year. Currently, the company makes Part X internally and charges a
Question 17 2 pts The Doors Company needs 20,000 units of Part X each year. Currently, the company makes Part X internally and charges a total of $32 to each part. This $32 is made up of $8 of direct materials, $7 of direct labor, and $5 of variable overhead, plus a total of $240,000 in fixed overhead. This fixed overhead is made up of $80,000 for a supervisor's salary, $60,000 in depreciation expense on a machine only used to make Part X, and $100,000 in common fixed costs. The machine has no resale value. If the Doors Company decides to purchase all of the units of Part X from an outside company, the supervisor would be fired and the facilities used to make Part X would be idle. What is the maximum amount PER PART that the Doors Company would be willing to pay an outside supplier to make Part X? Do not put a dollar sign in your answer. Question 18 2 pts Refer to question 17. Now assume that the supervisor would NOT be fired if Part X is purchased from the outside supplier. Now how much would the Doors Company be willing to pay the outside supplier for each unit of Part X? Your answer in question 17 minus some amount other than $4 per part. Your answer is question 17 plus some other amount than $4 per part. Your answer in question 17 minus $4 per part. O Your answer in question 17 plus $4 per part. Again refer to the original information in question 17 (in other words, disregard question 18). Assume that if Part X is purchased from an outside supplier, the Doors Company could use the facilities to make a different product that would benefit the company by $120,000. Now how much would the Doors Company be willing to pay the outside supplier for each unit of Part X? O Your answer in question 17 minus $6 per part. O Your answer in question 17 plus some amount other than $6 per part. O Your answer in question 17 plus $6 per part. O Your answer in question 17 minus some other amount than $6 per part
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