Question
The Riverbed Company manufactures 5,100 units of a part that could be purchased from an outside supplier for $16 each. Riverbed's costs to manufacture each
The Riverbed Company manufactures 5,100 units of a part that could be purchased from an outside supplier for $16 each. Riverbed's costs to manufacture each part are as follows: Direct materials $16 Direct Labor 3 Variable manufacturing overhead 6 Fixed manufacturing overhead 10 Total $23 All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses.
c) If Riverbed could lease the manufacturing facilities to another company for $25,100 per year, what would be the net total cost to outsource production of the part? Net cost to buy:
It is not the following amounts $61,098 or 16! Last chance.
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