Coronado Industries can manufacture 500 units of a required component part at the following costs: Direct Ingredients
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Question:
Coronado Industries can manufacture 500 units of a required component part at the following costs:
Direct Ingredients | 75300 dollars |
direct workforce | 20200 |
variable load | 60500 |
Fixed Overall Load | 10500 |
$2600 in fixed costs could be avoided if Coronado Industries outsources the component. At what external price for 500 units would he choose to buy rather than make Coronado?
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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