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someone solve this ?? Each year, Giada Company produces 22,000 units of a component part used in tablet computers. An outside supplier has offered to
someone solve this ??
Each year, Giada Company produces 22,000 units of a component part used in tablet computers. An outside supplier has offered to supply the part for $1.21. The unit cost is: Direct materials $0.71 Direct labor 0.27 Variable overhead 0.1 Fixed overhead 2.15 Total unit cost $3.23 Required: 1. What are the alternatives for Giada Company? Make the part in house or buy the part externally 2. Assume that none of the fixed cost is avoidable. List the relevant cost(s) of internal production. Direct materials, direct labor and variable overhead List the relevant cost(s) of external purchase. Purchase price 3. Which alternative is more cost effective and by how much? Making the part in house by $ 4. What if $19,960 of fixed overhead is rental of equipment used only in production of the component that can be avoided if the component is purchased? Which alternative is more cost effective and by how much? Buying the part from the external supplier by $ Jan Booth is considering investing in either a storage facility or a car wash facility. Both projects have a five-year life and require an investment of $370,000. The cash flow patterns for each project are given below. Storage facility: Even cash flows of $130,000 per year Car wash: $112,800, $143,000, $61,000, $126,000, and $90,000 Required: 1. Calculate the payback period for the storage facility (even cash flows). Round your answer to one decimal place. 2.8 years 2. Calculate the payback period for the car wash facility (uneven cash flows). Round your answer to three decimal places. 35 X yearsStep by Step Solution
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