Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

question on accounting problem please answer as soon as possible thank you fShould Whispering Winds Outdoors make or buy the tubes? (Round answers to 2

question on accounting problem please answer as soon as possible thank you

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
\fShould Whispering Winds Outdoors make or buy the tubes? (Round answers to 2 decimal places, e.g. 15.25. If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000).) Make Buy Net Income (Per Box) (Per Box) Increase (Decrease) Purchase price Direct materials Direct labour Variable overheads v Total cost S Whispering Winds should the tubes.What would be the maximum purchase price acceptable to Whispering Winds Outdoors for the tubes? (Round answer to 2 decimal places, e.g. 15.25.) Maximum purchase price per box Instead of sales of 100,000 boxes, revised estimates show a sales volume of 128,500 boxes. At this new volume, the company must acquire additional equipment, at an annual rental charge of $10.200, to manufacture the tubes. However, this incremental cost would be the only additional fixed cost, even if sales increased to 300,000 boxes. (The 300.000 level is the goal for the third year of production.) Under these circumstances, should Whispering Winds Outdoors make or buy the tubes? Show relevant costs only. Alternative 1: Purchase all the tubes Alternative 2: Produce all the tubes Plus: rent on new machine Total annual cost Whispering Winds Outdoors should the tubes.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Advanced Accounting In Canada

Authors: Hilton Murray, Herauf Darrell

9th Edition

1259654699, 978-1259654695

More Books

Students also viewed these Accounting questions

Question

Describe the components of identity.

Answered: 1 week ago

Question

1. To generate a discussion on the concept of roles

Answered: 1 week ago

Question

6. What information processes operate in communication situations?

Answered: 1 week ago