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Wynham Stereos produces and sells smart speakers. The following information about the costs related to the speakers has been collected. Selling price per unit $110)
Wynham Stereos produces and sells smart speakers. The following information about the costs related to the speakers has been collected. Selling price per unit $110) Total fixed overhead $1650000 Direct materials costs per unit $26 Direct labour cost per unit $23 Variable overhead per unit $20 Wynham Stereos normally produces 11500 of these speakers per year. The managers have recently received an offer from a Mexican company to produce these speakers for $88 each. The managers estimate that $314000 of Wynham Stereos' fixed costs could be eliminated if it accepted the offer. Required Calculate the total costs incurred if Wynham Stereos rejects the offer from the Mexican company and if it accepts the offer and state which option is more profitable. Total costs if the offer is rejected: $ Total costs if the offer is accepted: $ Most profitable option: Refer to the previous question about Wynham Stereos. Identify TWO distinct uncertainties for the decision to accept or reject the offer from the Mexican company
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