Canterbury Planes Ltd supplies the following information for the production of 15 000 tools. Fixed expenses total
Question:
Canterbury Planes Ltd supplies the following information for the production of 15 000 tools.
Fixed expenses total $74 000. The tools sell for $16 each. Canterbury Planes Ltd has received the following quotations for the supply of the tools:
Required
(a) Calculate the effect on profit and the break-even point of the quotations of
(i) North Island Tool Co.
(ii) South Island Tool Co.
if either was awarded the contract to supply the tools to Canterbury Planes Ltd.
(b) State whether Canterbury Planes Ltd should continue to produce the tools or whether it should buy them, and if so, from whom. Support your answer with figures.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
To calculate the effect on profit and the breakeven point for each of the quotations from North Island Tool Co and South Island Tool Co we need to compare the costs of producing the tools inhouse with ...View the full answer
Answered By
Abdul Wahab Qaiser
Before working at Mariakani, I volunteered at a local community center, where I tutored students from diverse backgrounds. I helped them improve their academic performance and develop self-esteem and confidence. I used creative teaching methods, such as role-playing and group discussions, to make the learning experience more engaging and enjoyable.
In addition, I have conducted workshops and training sessions for educators and mental health professionals on various topics related to counseling and psychology. I have presented research papers at conferences and published articles in academic journals.
Overall, I am passionate about sharing my knowledge and helping others achieve their goals. I believe that tutoring is an excellent way to make a positive impact on people's lives, and I am committed to providing high-quality, personalized instruction to my students.
0 Reviews
10+ Question Solved
Related Book For 
Question Posted:
