Question: Based on the above information, what is the difference in cost betwen keeping the old machine and replacing it? A) $37,000 in favor of keeping
Based on the above information, what is the difference in cost betwen keeping the old machine and replacing it? A) $37,000 in favor of keeping the old machine B) S12,000 in favor of keeping the old machine C) 537,000 in favor of replacing the machine D) $12,000 in favor of replacing the machine Consider the follow i Level of Activity Total Cest Units of Acthits hest Lowest Difference From the table above, use the high-low method of cost estimation to determine the total cost at an activity level of 9,000 units 18. Part 3 NHS needs 2,000 motors in its production of autos. It can buy the motors from KLM Motors for $2,500 each. NHS's plant can produce the motors for the following costs per unit: $1000 500 400 Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Total 700 $2,600 If Southwestern buys the motors from KLM, 70% of the fixed production overhead applied will not be avoided Required A. Should the company make or buy the motors? B. What other factors should NHS consider in determining whether to make or to buy
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