Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Snav gezinti Soru 15 2 Henz cevaplanmad XYZ Company has offered to sell 5000 units of product for $27 each to Company B. If Company
Snav gezinti Soru 15 2 Henz cevaplanmad XYZ Company has offered to sell 5000 units of product for $27 each to Company B. If Company B accepts the offer, some of the facilities presently used to manufacture this product could be used to help with the manufacture of another product, thus saving $15.000 of the fixed factory overhead applied to the earlier product Costs per unit for 5000 units are: 7 13 5.00 zerinden iaretlenmis Direct material: $4 Uygulamayib Soruyu iaretle Direct labour.12 Fixed factory overhead: $35.000 Which of the following statements is correct regarding the Company B consideration of making or buying? Ltfen birini sein a. Company B should not accept the offer because total cost of production per unit is higher than $27 Company should nccept the offer because they don't have to spend time for production iore c Company B should accept the offer because they can elimitate $15.000 of fixed cost d. Company should help the one the total costat aduction is less than total cost of purchase
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started