this Homework its for Managerail Accounting

Direction: Answer all questions: Show your solutions and discuss your recommendation concisely, if required. 1. Dell manufactures and sells Mobiles. Recently a supplier has offered the computers of the same quality @ BD 20 each with an assurance of continued supply. The following is the budget for 3000 units prepared for the quarter ending June 2018: Particulars AMOUNT (B) Raw Material Co 19670 Direct Wapes 17450 Production Overheads Variable 11325 Fixed 13715 Distribution Costs Variable 5870 Fixed 7200 Administration Costs Variable Fixed 4970 11950 Required: (a). ShouldDell Manufactures accept the offer from the supplier? (Marking Scheme: Computation: 6 Marks, Correct answer: 4 Marks, Total: 10 Marks) (b). What would be the decision if the supplier offered the tables at BD16 each and calucluate for 3500 units the Make decision? (Marking Scheme: Computation: 6 Marks, Correct answer: 4 Marks, Total: 10 Marks) 2. Ahmed WLL is selling automobile spare parts. The demand for a car wheel cover is at the rate of 5500 per year and this demand is going to continue for next two years. The company is decising wether to buy it from putside or manufacture it. If it buys from outside it will costs the company BD2.5 per unit. If it produces the fixed cost will be BD 9,850 and variable cost of BD 1.4 per unit. As the production manager of Ahmed WLL should your company manufacture or buy the 2. Ahmed WLL is selling automobile spare parts. The demand for a car wheel cover is at the rate of 5500 per year and this demand is going to continue for next two years. The company is decising wether to buy it from putside or manufacture it. If it buys from outside it will costs the company BD2.5 per unit. If it produces the fixed cost will be BD 9,850 and variable cost of BD 1.4 per unit. As the production manager of Ahmed WLL should your company manufacture or buy the wheel cover from outside. ? (Marking Scheme: Computation: 6 Marks, Correct answer: 4 Marks, Total: 10 Marks)