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Question: Part 043 is used in one of Scheetz Corporation's products. The company's Accounting Department reports the following costs of producing the 14,800 units of
Question: Part 043 is used in one of Scheetz Corporation's products. The company's Accounting Department reports the following costs of producing the 14,800 units of the part that are needed every year Direct material Direct labor Variable overhead Supervisor's salary $1.70 $2.70 $5.50 $6.00 $7.10 $4.20 Allocated general overhead Ar, outside suppler hashered to make the part and sell it tothe company for S21.00 eachifthis oter is accepted,the sponsor's salary and al ofthe earatie costs. aiag aed labor, a beaoded. The specal equipment used to make the part was purchased many years ago and has no salvage value or other use The allocated general overhead represents faed costs of the entire company. if the outside supplier's offler were accepted, only $20,800 of these allocated general overhead costs would be avoided a. Prepare a report that shows the effect on the company's total net operating income of buying part 043 from the supplier rather than continuing to make it inside the company. Input the amount as a positive value.) Total cost b. Which alternative shouild the company choose? Make
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