Rundle Bike Company makes the frames used to build its bicycles. During 2018, Rundle made 23,000 frames: the costs incured follow Uait-level eaterials costs (23,000 units $50 Uait-level labor costa (23,000 unts $52) uait-level over Lead coac [23,000 M ceareciation on anufactoring equipeent Bike frane production pervisor's salsry Iaveatory bolding costs ALIocated portion of taellity-level costs zotal cosc 1.150.00D 1,196,0OD 207.00D 98,000 6,900 30,000 46D DOD $3,517.900 Rundle has an opportunity to purchase frames for $116 each. Additional Information 1. The manufecturing equipment, which originelly cost $560,000, has a book value of $430,000, a remaining useful ife of eight years and a zero salvage value. If the equipment is not used to produce bicycle frames, it can be leased for $67000 per year 2. Rundle has the opportunity to purchase for $990.000 new manufacturing equipment that will have an expected useful life of four 3. If Rundie outsources the frames, the company can elilminate 70 percent of the inventory holding costs Required s. Determine the avoidable cost per unit of making the bike frames, sssuming that Rundle is considering the alternatives of making the b. Assuming thet Rundle is considering whether to replace the old equipment with the new equipment, determine the svoidable cost years and a salvage value of $68,800. This equipment will increase productivity substantialty, reducing unit-level labor costs by 70 percent Assume that Rundle will continue to produce and sell 23,000 frames per year in the future. product using the exising equipment or outsourcing the product to the independent contractor. Based on the quantitative data, should Rundle outsource the bike frames? per unit to produce the bike frames using the new equipment and the avodable cost per unit to produce the bike frames using the old equipment. Calculate the increase or decrease in the company's profit if the company uses new equipment c. Assuming thet Rundle is considering whether to either purchese the new equipment or outsource the bike frame, calculate. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below Required A Requ red Required c Determine the avoidable cost per unit of making the bike frames, assuming that Rundie is considering the alternatives of making the product using the existing equipment or outsourcing the product to the independent contractor. Based on the quantitative deta, should Rundle outsource the bike frames? (Round your answer to 2 decimal pleces.) Avo dable oos por unt for making the prod127.30 Rund e should outsource the bke frames? |por un Yes Required B Rundle Bike Company makes the frames used to build its bicycles. During 2018, Rundle made 23000 frames; the costs incurred follow Unit-level zaterials costs (23,000 units $50 Uait-level labor costo (23,000 units$52) usit-level overhead eoata [23,000 De2recintion on ranufecturing egulprent Bike frane production "upervi,or", .alary Iaventory tolding costs Allocatod portion of facility-levei coste total ceats 1.150-000 1,196,000 207.000 8.000 6,900 330.000 460,000 3.517.900 Rundle has an opportunity to purchase frames for $116 each. Additional Information 1. The manufecturing equipment, which originely cost $560,000, has a book value of $430000, a remaining useful life of eight years, and a zero salvage value. If the equipment is not used to produce bicycle frames, it can be leased for $67000 per year 2. Rundle has the opportunity to purchase for $990,000 new manufacturing equipment that vill have an expected useful life of four 3. If Rundie outsources the frames, the company can eliminate 70 percent of the inventory holding costs Required a Determine the avoidable cost per unit of making the bike frames, assuming thet Rundie is considering the alternatives of making the b. Assuming that Rundie is considering whether to replace the old equipment with the new equipment, determine the avoidable cost c. Assuming that Rundle is considering whether to ether purchese the new equipment or outsource the bike frame, calculate. years and a salvage value of $68,8O0 This equipment will increase productivity substantialy, reducing unt-level labor costs by 70 percent. Assume that Rundle will continue to produce and sell 23,000 frames per year in the future. product using the existing equ pment or outsourcing the product to the independent contractor Based on the quantitative data, should Rund e outsource the bike frames? per unit to produce the bike frames using the new equipment and the avoidable cost per unit to produce the bike frames using the old equipment. Calculate the increase or decrease in the company's proft if the company uses new equipment. & Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Requlred Recuired C Assuming that Rundle is considering whether to replace the old equipment with the new equipment, determine the avoidable cost per unit to produce the bike frames using the new equipment and the avoidable cost per unit to produce the bike frames using the old equipment. Celculete the increase or decreese in the compeny's profit if the company uses new equipment. (Round Avo dab'e cost per unit to 2 decimal places.) Show le6 Avodablo cost per unt Proft must 113.91 105 410 837 200 Required A Rundle Bike Company makes the frames used to build its bicycles. During 2018, Rundle made 23,000 frames; the costs incurred follow: Unit-level zaterials costs (23.000 units $50) unit-level labor costa (23,000 units , SS2) usit-level overhand costs [23.000 x $9 Depreciation on anufactoring equiprent bike frane production eupervisor's 551ary Iaventory boiding coasa Alleeated portion of facility-level eosts Total cOSts 1.150.00D 1,196,00D 207.000 98,000 6.900 330,000 460,00 3,517.900 Rundle has an opportunity to purchase frames for $116 each. Additional Information 1. The manufecturing equipment, which originelly cost $560,000, has a book value of $430,000, a semaining useful life of eight years, and a zero salvage va'ue. If the equipment is not used to produce bicycle frames, it can be leased for $67000 per year 2. Rundle has the opportunity to purchase for $990.000 new manufacturing equipment that will have an expected useful life of four yeers and a savage value of $68,800. This equipment will inciease productivity substantiely,reducing unit-level labor costs by 70 percent. Assume that Rundle will continue to produce and sell 23,000 frames per year in the future. 3 If Rundie outsources the frames, the company can eliminate 70 percent of the inventory holding costs Required a Determine the avoidable cost per unit of making the bike frames, assuming thet Rundile is considering the alternatives of making the b. Assuming that Rundie is considering whether to replace the old equipment with the new equipment, determine the avoidable cost c. Assuming that Rundie is considering whether to either purchese the new equipment or outsource the bike frame, calculate product using the existing equipment or outsourcing the product to the independent contractor. Based on the quantitative data, should Rund'e outsource the bike frames? per unit to produce the bike frames using the new equipment and the avoidable cost per unit to produce the bike frames using the old equipmont. Calculate the increase or decrease in the company's proft if the company uses new equipment Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Requlred B red C Assuming that Rundle is considering whether to either purchase the new equipment or outsource the bike frame, calculate. (Do not round intermediate calculations.) Should Runie purchase new eaupment or oulsource? Puchase Prort nvatecroasob $ 64400 Required