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Requirement 3. An outside contractor offers to do the finishing operation for 9,000 units at $4 per unit, double the $2 per unit that it
Requirement 3. An outside contractor offers to do the finishing operation for 9,000 units at $4 per unit, double the $2 per unit that it costs Vegas to do the finishing in-house. Should Vegas accept the subcontractor's offer? Show your calculations Select the formula you will use to calculate the change in throughput contribution. Then, enter the amounts in the formula and calculate the change in throughput contribution. Change in throughput contribution Vegas contract with an outside contractor to do 9,000 units of finishing at $4 per unit because the in throughput contribution is incremental costs by Requirement 4. The Halland Corporation offers to machine 5,600 units at $2 per unit, half the $4 per unit that it costs Vegas to do the machining in-house. Should Vegas accept Halland's offer? Show your calculations. Operating costs in the Machining Department of $440,000, or $4 per unit, are costs. Vegas save any of these costs by subcontracting machining 5,600 units to Halland. Total costs will be greater by Vegas accept Halland's order. Requirement 5. Vegas produces 2,600 defective units at the machining operation. What is the cost to Vegas of the defective items produced? Explain your answer briefly. The cost of 2,600 defective units at the machining operation is Because the Machining Department has a capacity of 140,000 units, it production to the Finishing Department. Therefore, there Machining Department. produce and transfer the annual opportunity cost of producing defective units in the vegas accept nalari soruer. Requirement 5. Vegas produces 2,600 defective units at the machining operation. What is the cost to Vegas of the defective items produced? Explain your answer briefly. The cost of 2,600 defective units at the machining operation is Because the Machining Department has a capacity of 140,000 units, it produce and transfer the annual production to the Finishing Department. Therefore, there opportunity cost of producing defective units in the Machining Department. Requirement 6. Vegas produces 2,600 defective units at the finishing operation. What is the cost to Vegas of the defective items produced? Explain your answer briefly. The cost of 2,600 defective units in the Finishing Department is Because the Finishing Department v a bottleneck operation, the cost of a defective unit is because of the of contribution margin. The Vegas Corporation manufactures filing cabinets in two operations: machining and finishing. It provides the following information: Click the icon to view the department information.) Each cabinet sells for $90 and has direct material costs of $65 incurred at the start of the machining operation. Vegas has no other variable costs. Vegas can sell whatever output it produces. The following requirements refer only to the preceding data. There is no connection between the requirements. Read the requirements Requirement 1. Vegas is considering using some modern jigs and tools in the finishing operation that would increase annual finishing output by 1,400 units. The annual cost of these jigs and tools is $30,000. Should Vegas acquire these tools? Show your calculations. Producing 1,400 more units will generate contribution (throughput) margin and operating income because Select the formula, then enter the amounts to calculate the change in throughput contribution. Change in throughput contribution Should Vegas acquire these tools? Should Vegas acquire these tools? the incremental costs by The Therefore, Vegas in throughput contribution margin is implement the new design. Requirement 2. The production manager of the Machining Department has submitted a proposal to do faster setups that would increase the annual capacity of the Machining Department by 12,500 units and would cost $24,000 per year. Should Vegas implement the change? Show your calculations. Increasing its capacity further increase contribution (throughput) margin. Vegas implement the change to increase production. Requirement 3. An outside contractor offers to do the finishing operation for 9,000 units at $4 per unit, double the $2 per unit that it costs Vegas to do the finishing in-house. Should Vegas accept the subcontractor's offer? Show your calculations Requirement 3. An outside contractor offers to do the finishing operation for 9,000 units at $4 per unit, double the $2 per unit that it costs Vegas to do the finishing in-house. Should Vegas accept the subcontractor's offer? Show your calculations Select the formula you will use to calculate the change in throughput contribution. Then, enter the amounts in the formula and calculate the change in throughput contribution. Change in throughput contribution Vegas contract with an outside contractor to do 9,000 units of finishing at $4 per unit because the in throughput contribution is incremental costs by Requirement 4. The Halland Corporation offers to machine 5,600 units at $2 per unit, half the $4 per unit that it costs Vegas to do the machining in-house. Should Vegas accept Halland's offer? Show your calculations. Operating costs in the Machining Department of $440,000, or $4 per unit, are costs. Vegas save any of these costs by subcontracting machining 5,600 units to Halland. Total costs will be greater by Vegas accept Halland's order. Requirement 5. Vegas produces 2,600 defective units at the machining operation. What is the cost to Vegas of the defective items produced? Explain your answer briefly. The cost of 2,600 defective units at the machining operation is Because the Machining Department has a capacity of 140,000 units, it production to the Finishing Department. Therefore, there Machining Department. produce and transfer the annual opportunity cost of producing defective units in the vegas accept nalari soruer. Requirement 5. Vegas produces 2,600 defective units at the machining operation. What is the cost to Vegas of the defective items produced? Explain your answer briefly. The cost of 2,600 defective units at the machining operation is Because the Machining Department has a capacity of 140,000 units, it produce and transfer the annual production to the Finishing Department. Therefore, there opportunity cost of producing defective units in the Machining Department. Requirement 6. Vegas produces 2,600 defective units at the finishing operation. What is the cost to Vegas of the defective items produced? Explain your answer briefly. The cost of 2,600 defective units in the Finishing Department is Because the Finishing Department v a bottleneck operation, the cost of a defective unit is because of the of contribution margin. The Vegas Corporation manufactures filing cabinets in two operations: machining and finishing. It provides the following information: Click the icon to view the department information.) Each cabinet sells for $90 and has direct material costs of $65 incurred at the start of the machining operation. Vegas has no other variable costs. Vegas can sell whatever output it produces. The following requirements refer only to the preceding data. There is no connection between the requirements. Read the requirements Requirement 1. Vegas is considering using some modern jigs and tools in the finishing operation that would increase annual finishing output by 1,400 units. The annual cost of these jigs and tools is $30,000. Should Vegas acquire these tools? Show your calculations. Producing 1,400 more units will generate contribution (throughput) margin and operating income because Select the formula, then enter the amounts to calculate the change in throughput contribution. Change in throughput contribution Should Vegas acquire these tools? Should Vegas acquire these tools? the incremental costs by The Therefore, Vegas in throughput contribution margin is implement the new design. Requirement 2. The production manager of the Machining Department has submitted a proposal to do faster setups that would increase the annual capacity of the Machining Department by 12,500 units and would cost $24,000 per year. Should Vegas implement the change? Show your calculations. Increasing its capacity further increase contribution (throughput) margin. Vegas implement the change to increase production. Requirement 3. An outside contractor offers to do the finishing operation for 9,000 units at $4 per unit, double the $2 per unit that it costs Vegas to do the finishing in-house. Should Vegas accept the subcontractor's offer? Show your calculations
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