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Requirement 2. The facilities freed by purchasing bindings from Lancaster can be used to manufacture another product that will contribute $2,700 to profit. Total fixed
Requirement 2. The facilities freed by purchasing bindings from Lancaster can be used to manufacture another product that will contribute $2,700 to profit. Total fixed costs will be the same as if Outdoor Life had produced the bindings. Show which alternative makes the best use of Outdoor Life's facilities. (Only enter the net relevant costs. Enter all costs as positive values. Use a minus sign or parentheses for decreases to net costs.) Make Bindings Outsource Bindings Facilities Make New Idle Product Binding costs Variable Costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Lancaster Transportation Logo Expected profit from new product Expected net cost of obtaining 2,000 bindings Enter any number in the edit fields and then click Check Answer. part remaining Clear All Check Answer 1 Data Table - X Direct materials $ Direct labor Variable overhead 17,560 3,200 2,120 6,600 Fixed overhead $ 29,480 Total manufacturing costs for 2,000 bindings Print Done Requirement 2. The facilities freed by purchasing bindings from Lancaster can be used to manufacture another product that will contribute $2,700 to profit. Total fixed costs will be the same as if Outdoor Life had produced the bindings. Show which alternative makes the best use of Outdoor Life's facilities. (Only enter the net relevant costs. Enter all costs as positive values. Use a minus sign or parentheses for decreases to net costs.) Make Bindings Outsource Bindings Facilities Make New Idle Product Binding costs Variable Costs: Direct materials Direct labor Variable overhead Fixed costs Purchase price from Lancaster Transportation Logo Expected profit from new product Expected net cost of obtaining 2,000 bindings Enter any number in the edit fields and then click Check Answer. part remaining Clear All Check Answer 1 Data Table - X Direct materials $ Direct labor Variable overhead 17,560 3,200 2,120 6,600 Fixed overhead $ 29,480 Total manufacturing costs for 2,000 bindings Print Done
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