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You stated that the previous Excel spreadsheet I attached was correct by stating: So if they buy instead of making they will save $ 6
You stated that the previous Excel spreadsheet I attached was correct by stating: "So if they buy instead of making they will save $ 6 on each unit making it $ 60000 for 10000 Units." However, the Excel spreadsheet seemed to have incorrect statements of the costs of insourcing versus outsourcing in the number statments.
I have attached the Excel Template and the questions. Could you please fill out the Excel spreadsheet as you believe it should be done.
Cincinnati Flow Technology Outsource (Buy) $ $ 0 (pumps) - ($ per unit) - ($ annually) Insource (Make) $ $ 0 (pumps) - ($ per unit) - ($ annually) Cost in making 10,000 pumps Components (outside purchase)......................................................................... $ Assembly labor............................................................................................................ $ Manufacturing overhead.......................................................................................... $ General / Adminstrative overhead........................................................................... $ Fixed overhead.................................................... Variable overhead.............................................. Manufacturing overhead................................ 50% $ 100% $ 150% $ - - Total costs to be avoided by purchasing..........................................................................= $ - Total costs of purchasing (10,000 pumps x $102 per unit)............................................= $ - Total annual net saving.........................................................................................................= $ - Type your response to the question here: References: Cheg http://www.chegg.com/homework-help/questions-and-answers/complete-p14-48-pages-624-625-managerialaccounting-creating-value-dynamic-business-enviro-q13076029Step by Step Solution
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