Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sharp Malaysia produces 5,000 units of carbon filters annually for its air purifier, at the following costs: Inova Technology offers to supply 5,000 units of

image text in transcribed

Sharp Malaysia produces 5,000 units of carbon filters annually for its air purifier, at the following costs: Inova Technology offers to supply 5,000 units of the carbon filters at a price of RM35 per unit. The outsourcing of carbon filter production to Inova Technology will reduce fixed manufacturing costs by RM5,000. 1. Weigh total costs between these two altematives: (a) continue to produce carbon filter and (b) buy carbon filter from Inova Technology. (8 marks) 2. Explain which of the two altematives is advantageous to Sharp Malaysia? (2 marks) 3. Assume that in manufacturing the carbon filter, Sharp Malaysia replaces the existing direct labour with contract employees who will be paid RM40,000 per annum. They need certain level of skill and must complete a training program at a cost of RM 10,000 . In addition, an existing superior who receives RM100,000 salary per annum will oversee these contract employees. This supervision constitutes 10% of the superior's total work time. a. Revise total direct labour costs for the carbon filter production. (5 marks) b. Investigate whether Sharp Malaysia should continue to produce or buy carbon filter when it employs the contract employees

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: John Burns, Martin Quinn, Liz Warren, João Oliveira

1st Edition

0077121619, 978-0077121617

More Books

Students also viewed these Accounting questions

Question

Do I have evidence for this statement?

Answered: 1 week ago