Question
Quiche & Tell, Inc., is considering outsourcing one of its many products rather than making it internally. The supplier will charge $15,000 for 3,000 quiches.
Quiche & Tell, Inc., is considering outsourcing one of its many products rather than making it internally. The supplier will charge $15,000 for 3,000 quiches. The costs per quiche to make include:
Cost per Quiche
Allocated Corporate Overhead-$1
Direct Labor-$2
Direct Materials-$1
Manager's Salary-$3
If Quiche & Tell outsources, what is the savings (or loss) per quiche?
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Managerial Accounting
Authors: Karen BraunWendy Tietz
3rd Edition
0132890542, 978-0132890540
