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Unit-level selling expenses (17,000 * $0.30) Contribution margin Skin cream production supervisor's salary Allocated portion of facility-level costs Product-level advertising cost Contribution to companywide income
Unit-level selling expenses (17,000 * $0.30) Contribution margin Skin cream production supervisor's salary Allocated portion of facility-level costs Product-level advertising cost Contribution to companywide income (5,100) 197,200 (59,000) (13,400) (42,000) $ 82,800 3.33 points eBook Required a. Identify the cost items relevant to the make-or-outsource decision, b. What is the avoidable cost per unit if the outsourcing decision is taken? Should Solomon continue to make the product or buy it from the supplier? c. Suppose that Solomon is able to increase sales by 13,000 units (sales will increase to 30,000 units), Calculate the total avoidable costs. At this level of production, should Solomon make or buy the cream? Print References Complete this question by entering your answers in the tabs below. Required A Required B Required Suppose that Solomon is able to increase sales by 13,000 units (sales will increase to 30,000 units). Calculate the total avoidable costs. At this level of production, should Solomon make or buy the cream? Total avoidable costs At this level of production, should Solomon make or buy the cream? Make
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