Question: Current Attempt in Progress Sheridan Water Ca . is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used in

Current Attempt in Progress Sheridan Water Ca. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used in each of its systems. Based on an annual production of 48,500 timers, the company has calculated the following unit costs. Direct fixad costs include supervisory and clerical salariss and equipment depraciation. Clifton Clocks has offered to provide the timer units to Sharidan at a price of \$33 per unit. If Sheridan accepts the offer, the current timer unit supervisory and clarical staff will be laid off (a1) Your Answar CorrectAnswer Your answer is correct. Calculate the total relevant cost to maloe or buy the timer units. (Round answers to 0 decimal places, e.g.5,250.) Your answer is correct. Assuming that Sheridan Water has no other use for either the facilitiss or the equipment currently used to manufacture the timer units, should the company accept Clifton's offer? (b1) Your answer is incorrect. Assume that if Sheridan Water accepts Clifton's offer, the company can use the fresd-up manufacturing facilities to manufacture a new line of growing lights. The company estimates it can sell 91,590 of the new lights each yas at a price of \(\$ 11\). Variable costs of the lights are expected to be \(\$ 8\) par unit. The timer unit supervisory and clerical staff would be transfarred to this new product line. Calculate the total relevant cost to make the timer units and the nat cost if they accapt Clifton's offer. Total relevant cost to make Net relevant cost if they accept Clifton's affer
Total relevant cost to make is not: 1325730 or 1341770
Net relevant cost if they accept Clifton's offer: 1503500 or 1600500
Current Attempt in Progress Sheridan Water Ca .

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!