The part can be purchased from an outside supplier at $20 per unit. If the pays f wrahased from the outside supplier, two thirds of the total fixed costs incurred in prodycyis a can be avoided. The annual financial advantage (disadvantage) for the compaziy a t of buying the part from the outside supplier would be: 6) Part U16 is used by Mcvean Corporation to make one of its prokus. A total of 23,000 units of this part are produced and used every year. The company's Accusting Department reports the following costs of producing the part at this level of act An outside supplier has offered to make the part and sell it to the company for $32.70 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part UI 6 could be used to make more of one of the company's other products, generating an additional segment margin of $35,000 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part U16 from the outside supplier should be: 7) Trovato Corporation is considering a project that would require an investment of $73,000. No other cash outflows would be involved. The present value of the cash inflows would be $99,280. The profitability index of the project is closest to (Ignore income taxes.): The part can be purchased from an outside supplier at $20 per unit. If the pays f wrahased from the outside supplier, two thirds of the total fixed costs incurred in prodycyis a can be avoided. The annual financial advantage (disadvantage) for the compaziy a t of buying the part from the outside supplier would be: 6) Part U16 is used by Mcvean Corporation to make one of its prokus. A total of 23,000 units of this part are produced and used every year. The company's Accusting Department reports the following costs of producing the part at this level of act An outside supplier has offered to make the part and sell it to the company for $32.70 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part UI 6 could be used to make more of one of the company's other products, generating an additional segment margin of $35,000 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part U16 from the outside supplier should be: 7) Trovato Corporation is considering a project that would require an investment of $73,000. No other cash outflows would be involved. The present value of the cash inflows would be $99,280. The profitability index of the project is closest to (Ignore income taxes.)
