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(The following information applies to the questions displayed below Hoboken Industries currently manufactures 36.0oo units of part MR24 each month for use in production of
(The following information applies to the questions displayed below Hoboken Industries currently manufactures 36.0oo units of part MR24 each month for use in production of several of its products. The facilities now used to produce part MR2 4 have a fixed monthly cost of $180.000 and a capacity to produce JR63 from an outside supplier. the facilities would be idle, but its 87.000 units per month. If the company were to buy part fixed costs would continue at 40 percent of their present amount. The variable production costs of part MR24 are $11 per unit. supplier at a unit purchase price of $13, what is the monthly usage 2. If Hoboken Industri at which it will be indifferent between purchasing and making part MR24 ? es is able to obtain part MR24 from an outside
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