Question
Question Content Area Lockrite Security Company manufacturers home alarms. Currently, it is manufacturing one of its components at a total cost of $41, which includes
Question Content Area
Lockrite Security Company manufacturers home alarms. Currently, it is manufacturing one of its components at a total cost of $41, which includes fixed costs of $12 per unit. An outside provider of this component has offered to sell Lockrite the component for $37.
Provide a differential analysis of the outside purchase proposal. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.
| Differential Analysis | ||||||
| Make Component (Alternative 1) or Buy Component (Alternative 2) | ||||||
| Make Component (Alternative 1) | Buy Component (Alternative 2) | Differential Effects (Alternative 2) | ||||
| Unit costs: | ||||||
| Purchase price | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 | |||
| Variable costs | fill in the blank 4 | fill in the blank 5 | fill in the blank 6 | |||
| Fixed costs | fill in the blank 7 | fill in the blank 8 | fill in the blank 9 | |||
| Total unit costs | $fill in the blank 10 | $fill in the blank 11 | $fill in the blank 12 | |||
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Financial Accounting Information For Decisions
Authors: John J Wild
3rd Edition
0072974729, 978-0072974720
