Question: Everything that is highlighted needs an answer Part 1.) Outsourcing Dough, Re, Mi Inc. sells many different types of cookie dough. The company is deciding
Everything that is highlighted needs an answer
Part 1.) 
Outsourcing Dough, Re, Mi Inc. sells many different types of cookie dough. The company is deciding whether to continue making its own dough or to outsource. If the company outsources, they will eliminate all of the variable overhead and 25% of the fixed manufacturing overhead, but will incur shipping costs. Use the information below to determine whether Dough, Re, Mi Inc. should outsource or not. Units Relevant? No 5,450 $ Yes Per unit 108.00 24.00 18.00 14.00 27.00 Yes No Data Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (MOH) : Avoidable fixed MOH Unavoidable fixed MOH Sales commissions Advertising costs Purchase price of outsourced product Shipping costs of outsourced product per unit per unit per unit per unit per month per month per month per unit per month per unit per unit Yes Yes No 3.00 1.80 No Yes 59.00 1.00 Yes Costs per unit Manufactures Enter "=0" in the cell for any cost not relevant to the decision. = Outsource Incremental analysis Variable costs Direct materials Direct labor Variable manufacturing overhead Purchase price Shipping costs Sales commissions Total variable costs Fixed costs Fixed manufacturing overhead Advertising Total fixed costs Incremental cost Should Dough, Re, Mi Inc. manufacture or outsource its dough? , , If Dough, Re, Mi manufactures its own dough, what would its Operating Income be? If Dough, Re, Mi outsources its dough, what would its Operating Income be? Special Order Pete's Pizza makes the best pizzas in town. Based on Pete's current volume, the price and cost breakdown is outlined below. The local high school has asked Pete to be their sole pizza provider for a . . large event and has offered to order 400 pizzas at a special price. Per unit Relevant? Normal sales price 12.00 MA Instructions AM6 Proiect + Outsourcing Dough, Re, Mi Inc. sells many different types of cookie dough. The company is deciding whether to continue making its own dough or to outsource. If the company outsources, they will eliminate all of the variable overhead and 25% of the fixed manufacturing overhead, but will incur shipping costs. Use the information below to determine whether Dough, Re, Mi Inc. should outsource or not. Units Relevant? No 5,450 $ Yes Per unit 108.00 24.00 18.00 14.00 27.00 Yes No Data Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead (MOH) : Avoidable fixed MOH Unavoidable fixed MOH Sales commissions Advertising costs Purchase price of outsourced product Shipping costs of outsourced product per unit per unit per unit per unit per month per month per month per unit per month per unit per unit Yes Yes No 3.00 1.80 No Yes 59.00 1.00 Yes Costs per unit Manufactures Enter "=0" in the cell for any cost not relevant to the decision. = Outsource Incremental analysis Variable costs Direct materials Direct labor Variable manufacturing overhead Purchase price Shipping costs Sales commissions Total variable costs Fixed costs Fixed manufacturing overhead Advertising Total fixed costs Incremental cost Should Dough, Re, Mi Inc. manufacture or outsource its dough? , , If Dough, Re, Mi manufactures its own dough, what would its Operating Income be? If Dough, Re, Mi outsources its dough, what would its Operating Income be? Special Order Pete's Pizza makes the best pizzas in town. Based on Pete's current volume, the price and cost breakdown is outlined below. The local high school has asked Pete to be their sole pizza provider for a . . large event and has offered to order 400 pizzas at a special price. Per unit Relevant? Normal sales price 12.00 MA Instructions AM6 Proiect +
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