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Question 3 The Henderson Company is producing the cooling fans used in the production of laptop computers. Related costs incurred for the cooling fan are
Question 3 The Henderson Company is producing the cooling fans used in the production of laptop computers. Related costs incurred for the cooling fan are Cooling Fan Costs Per Unit Direct Materials $ 5.00 Direct Labor 4.50 VOH 1.50 Fixed Supervisor Salary 2.50 Depreciation expense on factory equipment 1.50 General fixed factory overhead 4.00 Total 19.00 The above per unit costs are based on 10,000 units. An outside supplier will provide 10.000 cooling fans for $18 per unit. The company's supervisor will be terminated if the cooling fans are not produced in house. The idle factory will be used to manufacture another computer product with a contribution margin of $30,000. Based on this information, what should the Henderson Company do make or buy and how would this decision affect operating income? Show your calculations for credit. Example of how to answer should make and save $5. Question 6 The Henderson Company sells picnic tables and has no beginning and ending inventories. Theyve shared the following data Sales Price per Unit $100 Direct Materials Used 90,000 Direct Labor 110,000 Variable Overhead 80,000 Variable Selling & Administrative 30.000 Fixed Overhead 150.000 Axed Sling Adminstrative 20,000 Units Produced and sold 8.000 Determine the operating income assuming the Henderson Company uses the absorption approach to prepare the income statement Show your calculations for credit
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