x Data table $ 125,000 22,000 Materials Labor Indirect manufacturing costs Variable 23,000 Fixed 80,000 250,000 $ Total Print Done Harvest One Fruit Company sells premium quality oranges and other citrus fruits by mail order. Protecting the fruit during shipping is important so the company has designed and produces shipping boxes. The annual cost to make 100.000 boxes is (Click the icon to view the costs.) Therefore, the cost per box averages $2.50. Suppose United Container submits a bid to supply Harvest One with boxes for $2.40 per box. Harvest One must give United Container the box design specifications, and the boxes will be made according to those specs. Read the requirements CH Requirement 1. How much, if any, would Harvest One save by buying the boxes from United Container? Assume all fixed costs are unavoidable Begin by completing the table below to determine the total relevant costs of making the boxes versus purchasing the boxes from United Container. (Only complete the necessary answer boxes.) Make Buy Total relevant costs How much, if any, would Harvest One save by buying the boxes from United Container. Harvest One would V Sif it purchased the boxes from United Container. Therefore, Harvest One should United Container's offer. Requirement 2. What subjective factors should affect Harvest One's decision whether to make or buy the boxes? (Select all that apply.) A. Does Harvest One sacrifice proprietary information when disclosing the box specifications to United Container? B. Might United Container raise prices if Harvest One closed down its box-making facility? c. is a timely supply of boxes assured, even if the number needed changes? D. Will sub-contracting the box production affect the quality of the boxes? Requirement 3. Suppose all the fixed costs represent depreciation on equipment that was purchased for $800,000 and is just about at the end of its 10-year life. New replacement equipment will cost $950,000 and is also expected to last 10 years. Assume $0 in residual value. In this case, how much, if any, would Harvest One save by buying the boxes from United Container? Begin by completing the table below to determine the total relevant costs of making the boxes versus purchasing the boxes from United Container in this scenario. (Only complete the necessary answer boxes.) Make Buy Total relevant costs In this case, how much, if any, would Harvest One save by buying the boxes from United Container? In this case. Harvest One would Sif it purchased the boxes from United Container. Therefore. Harvest One should V United Container's offer. Harvest One Fruit Company sells premium quality oranges and other citrus fruits by mail order. Protecting the fruit during shipping is important so the company has designed and produces shipping boxes. The annual cost to make 100,000 boxes is !!! (Click the icon to view the costs.) Therefore, the cost per box averages $2.50. Suppose United Container submit a bid to supply Harvest One with boxes for $2.10 per box. Harvest One must give United Container the box design spesifications, and the boxes will be made according to those specs. Read the require nent Requirement 1. How muoh, if any, would Harvest One cave by buying the boxes from United Container? Assume all fixed costs are unavoidable. Beyin Ly cumpleiny Le Lable below lu delermine the Lulal relevant wusls u making the luxes versus purchasing the buxes from United Cunlainen. (Orly complete the necessary answer buxes.) Make Buy Avoidablo annual fixed factory overhead United Container's offer Direct labor es from United Container Direct materlals urchased the boxes from United Container. Therefore, I larvest One should Purchasc cost t One's decision whether to make or buy the boxes? (Select all that apply.) Unavoidable annual fixed factory overhead len disclosing the box specifications to United Container? Varlable factory overhead sed down its box-making facility? C. Isa timely supply of boxes assured, even if the number nccded changes? OD Will Sub-contracting the hox production affect the quality of the hoxes? Requirement 3. Suppose all the fixed costs represent depreciation on equipment that was purchased for 5800,000 and is just about at the end of Its 10-year life. New replacement equipment will cost $950,000 and is also expected to last 10 years. Assume so in residual value. In this case, how much, if any, would Harvest One save by buying the boxes from United Container? begin by completing the table below to determine the total relevant costs of making the boxes versus purchasing the boxes from Unted Container in this scenario. (Only complete the necessary answer boxes. Make Buy Total relevant costs In Lluis case, How much, if any, wuulu Harvest One save by buying the boxes from United Curliner? In this case, Harvest One woulu ir il purchased the buzes from United Container. Therefore, Harvest Onestiulu United Cutline's uller
