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TB MC Qu. 4-93 (Algo) Parton Company, a manufacturer of snowmobiles, is... Parton Company, a manufacturer of snowmobiles, is operating at 75% of plant capacity.
TB MC Qu. 4-93 (Algo) Parton Company, a manufacturer of snowmobiles, is... Parton Company, a manufacturer of snowmobiles, is operating at 75% of plant capacity. Parton's plant manager is considering making the headlights now being purchased from an outside supplier for $13.80 each. The Parton plant has idle equipment that could be used to manufacture the headlights. The design engineer estimates that each headlight requires $4.70 of direct materials, $3.70 of direct labor, and $6.70 of manufacturing overhead. Forty percent of the manufacturing overhead is a fixed cost that would be unaffected by this decision. A decision by Parton Company to manufacture the headlights should result in a net gain (loss) for each headlight of: (CMA adapted) Multiple Choice O $11.30) $2.72 Prev 14 of 20 BH Next > Dints) Saved Help Save & Exit Sub Multiple Choice $(1.30). $272 $1.38 $3.53
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