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TB MC Qu. 11-122 Mcfarlain Corporation is presently making part U98 that is used ... Mctarlain Corporation is presently making part U98 that is used
TB MC Qu. 11-122 Mcfarlain Corporation is presently making part U98 that is used ... Mctarlain Corporation is presently making part U98 that is used in ope of its products. A total of t6,000 units of this part are produced and used every year. The companys Accounting Department repoits the following costs of producing the part at this level of activity: can be avoided. The special equipment uned to make the part was puachwed many years ago and has no salvage value or other use. The allocated general overtead repretents fixed costs of the entire company, none of which would be ovoided if the pert were purchased instead of produced inteenuly In addition to the tacts given above, assume that the spoce used to produce part ugs could be used to make more of one of the companys other products, generating an additional segment murgin of $33,400 per year for that product. What would be the finsncial advantage fidsadvantagel of buyng part Uga from the outside supplier and using the freed space to mahe more of the other product? Multiple Choice ($17,800) $33,400 ($75.400) ($84,600)
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