QUESTION 3 The Winery Canary IWC) manufactures wine saplers. WC manufactures two types of coalers: Regular and Prerriurn. The Prerrium wine cooler uses a thermoelectric syster instead of a compressar powered bolirg used in the Regular cooler. The thermoslectric system reduces the vibrations of the cooler, which may disturb the delicate sedimients in fire wine, WC prxluces the compressar pluwured coaler, but purchase the thermalmetr chucen fram Therint, nc for $50 per unit. Currently, WC traduces and sells 1,000 units of each. The Freriiuiri baaler requires a special machine to install tre hermetic syslern, which operating al capacity. The data for the two product on units is ever below. Fegular Premium 5300 Raw Materials $150 (ncludes $50 for the molectric system) Latar Stors @ $10 8 irse 510 Variable Overhead 54 pe DUH 13 per DLH Fixed Cverhead $5 per DUH $ per DLH Market Price 5200 WAC is consdering whether to rent a plant for $10,000 ber year to produce the 1.000 units of the thermoelectric systems instead of ourchasing them. The budpeted costs per unit for 1.3101 uns not including rent are as follows Thermo System Rew Malerials $10 Direct Lab 1 hr@ $10 Variable Overhead $8 per DLH Fixed Cherhead $7 per DIH Canacity 2000 units WC woud then have to ship the thermaelectric system to its cooler alentat per urt. Required: 1. Should the company continue to buy the thermoelectric system from Thermo Inc.? 7. WC is considering renting an additional machine 155,IXID) annual rent) that rar install the thermoelectric system in the Premium Coolers the market ng derartment believes tan sell an addmonal 50 units, but the market price for Premium Coolers will drop in 78 per unit Should w ent the additional machine (assume that all other cous peruntanatha me. Also, answer this ouestion without change your answer to quest an 1). QUESTION 3 The Winery Canary IWC) manufactures wine saplers. WC manufactures two types of coalers: Regular and Prerriurn. The Prerrium wine cooler uses a thermoelectric syster instead of a compressar powered bolirg used in the Regular cooler. The thermoslectric system reduces the vibrations of the cooler, which may disturb the delicate sedimients in fire wine, WC prxluces the compressar pluwured coaler, but purchase the thermalmetr chucen fram Therint, nc for $50 per unit. Currently, WC traduces and sells 1,000 units of each. The Freriiuiri baaler requires a special machine to install tre hermetic syslern, which operating al capacity. The data for the two product on units is ever below. Fegular Premium 5300 Raw Materials $150 (ncludes $50 for the molectric system) Latar Stors @ $10 8 irse 510 Variable Overhead 54 pe DUH 13 per DLH Fixed Cverhead $5 per DUH $ per DLH Market Price 5200 WAC is consdering whether to rent a plant for $10,000 ber year to produce the 1.000 units of the thermoelectric systems instead of ourchasing them. The budpeted costs per unit for 1.3101 uns not including rent are as follows Thermo System Rew Malerials $10 Direct Lab 1 hr@ $10 Variable Overhead $8 per DLH Fixed Cherhead $7 per DIH Canacity 2000 units WC woud then have to ship the thermaelectric system to its cooler alentat per urt. Required: 1. Should the company continue to buy the thermoelectric system from Thermo Inc.? 7. WC is considering renting an additional machine 155,IXID) annual rent) that rar install the thermoelectric system in the Premium Coolers the market ng derartment believes tan sell an addmonal 50 units, but the market price for Premium Coolers will drop in 78 per unit Should w ent the additional machine (assume that all other cous peruntanatha me. Also, answer this ouestion without change your answer to quest an 1)
