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Whispering Winds Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides the following cost information for manufacturing 10,400 units
Whispering Winds Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides the following cost information for manufacturing 10,400 units of subcomponent JXY per month. Direct materials costs $39,400 Direct labour costs 28,300 Variable overhead 14,500 Fixed overhead" 12.200 "Fixed overhead includes $4,400 supervisor's salary. International Firm agrees to supply Whispering Winds with 10,400 units per month for a total cost of $131.850. If subcomponent JXY is outsourced, Whispering Winds will be able to increase the production and sales of its final product by 1,110 units per month; the product is sold for $120 per unit and its average variable costs per unit are $85. The supervisor's salary will be eliminated if subcomponent JXY is outsourced. (a) Prepare an incremental analysis for subcomponent JXY. (If an amount reduces the incremental costs then enter with a negative sign preceding the number eg.-15,000 or parenthesis, eg. (15,000). While alternate approaches are possible, irrelevant foxed costs should be included in both options when solving this problem.) Prepare an incremental analysis for subcomponent JXY. (If an amount reduces the incremental costs then enter with a negative sign preceding the number eg.-15,000 or parenthesis, eg. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Direct materiis Direct labour Cost of good soldManufacturing overhead Fixed overhead Total monthly cost Cost of good soldManufacturing overhead Opportunity cost Purchase price Variable overhead Save for Later Increm Car Make Buy (Savi $ Attempts: 0 of 2 used Submit
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