Bark Co. manufactures dog toys. The costs per unit, for 20,000 dog toys, are as follows....
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Bark Co. manufactures dog toys. The costs per unit, for 20,000 dog toys, are as follows. Bark Co. Unit Cost Data for 20,000 Dog Toys Fixed Overhead Direct Materials Variable Overhead $2 41 $5 $6 Direct Labor Woof Inc. has offered to sell 20,000 dog toys to Bark Co. for $14 per dog toy. If Bark Co. accepts Woof Inc.'s offer, the facilities used to manufacture dog toys could be used to produce cat toys. Revenues from the sale of cat toys are estimated at $48,000, with variable costs amounting to 50% of sales. In addition, $1 per unit of the fixed overhead associated with the manufacture of dog toys could be eliminated. What is the dollar difference between making and buying the dog toys? Note: Do not use a negative sign with your answer. $ 0 Should Bark Co. accept Woof Inc.'s offer? Yes Partially correct Marks for this submission: 0.50/1.00. Bark Co. manufactures dog toys. The costs per unit, for 20,000 dog toys, are as follows. Bark Co. Unit Cost Data for 20,000 Dog Toys Fixed Overhead Direct Materials Variable Overhead $2 41 $5 $6 Direct Labor Woof Inc. has offered to sell 20,000 dog toys to Bark Co. for $14 per dog toy. If Bark Co. accepts Woof Inc.'s offer, the facilities used to manufacture dog toys could be used to produce cat toys. Revenues from the sale of cat toys are estimated at $48,000, with variable costs amounting to 50% of sales. In addition, $1 per unit of the fixed overhead associated with the manufacture of dog toys could be eliminated. What is the dollar difference between making and buying the dog toys? Note: Do not use a negative sign with your answer. $ 0 Should Bark Co. accept Woof Inc.'s offer? Yes Partially correct Marks for this submission: 0.50/1.00.
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