Creative Link Ltd manufactures 55,500 units of cushions for use in its production line. At this level
Fantastic news! We've Found the answer you've been seeking!
Question:
Creative Link Ltd manufactures 55,500 units of cushions for use in its production line. At this level of activity, the cost per unit of cushion is as follows.
Direct Materials | $6.66 |
Direct labor | 18.50 |
Variable overhead | 4.44 |
Fixed overhead | 16.65 |
Total cost | $46.25 |
An outside supplier has offered to sell 55,500 units of cushions to Make-it-Work Ltd for $35 per cushion.
Required:
Prepare computations to show whether or not Make-it-Work should continue to make the cushions or accept the outside supplier's offer in excel file
Related Book For
Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
Posted Date: