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Wynham Stereos produces and sells speakers and CD players. The following information about the costs related to the systems has been collected. $ $ Selling
Wynham Stereos produces and sells speakers and CD players. The following information about the costs related to the systems has been collected. $ $ Selling price per unit Total fixed overhead 59 195 Production costs per unit 163,000 Direct materials Direct labour Variable overhead 82 32 Wynham Stereos normally produces 35,000 of these systems per year. The managers have recently received an offer from a Mexican company to produce these systems for $176 each. The managers estimate that $97,800 of Wynham Stereos' fixed costs could be eliminated if it accepted the offer. Required: Perform a quantitative analysis for the decision. Important: For any amounts, please don't include the dollar sign ($) or any thousands separators - i.e., $12,000 should be written as 12000. If you think the amount in a cell should be 0, type 0 - don't leave that cell empty. For any amounts, please don't include the - (minus) sign in front of the amounts and also don't place the amounts in parentheses. For any amounts, please don't include the dollar sign ($) or any thousands separators - i.e., $12,000 should be written as 12000. If you think the amount in a cell should be 0, type 0 - don't leave that cell empty. For any amounts, please don't include the - (minus) sign in front of the amounts and also don't place the amounts in parentheses. Make Buy $ $ Direct materials Direct labour Variable overhead Fixed overhead Purchase price Total costs
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