(10) Gemini sells two precision measurement gauges, Alpha and Omega. Price and Manufacturing cost data regarding...

 

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(10) Gemini sells two precision measurement gauges, Alpha and Omega. Price and Manufacturing cost data regarding these two gauges follow, Both products require a professional inspection service which is done by the Gemini's Inspection Department. Currently, only 340 hours of the professional inspection hours are available. Selling price per unit Professional Inspection hours required per unit Standard cost per unit: Variable Fixed Total Alpha $2,100 2 hrs $1,300 300 $ 1.600 Omega $2,400 3. hrs $1,500 200 $1.700 The company can sell 80 units of Alpha and 100 units of Omega. An outside supplier has offered to sell Alpha at the price of $1,800 each. The company is trying to determine the number of units to be produced for each product. A. You need to get Alphas before sell them. In obtaining Alpha, what two options are available? B. How much is the opportunity cost of Make & sell 1 unit of Alpha? C. How much is the UCM of Make & sell, net of opportunity cost? D. For each product, calculate contribution margin, net of opportunity cost, per inspection hour. E. Which product should be manufactured first? F. Determine the number of units to be produced and purchased for each product. G. Assume that the company has found an independent contractor that is willing to provide the required inspection service. The contractor charges on an hourly basis. What is the maximum price that Gemini is willing to pay per hour for the professional inspection? (10) Gemini sells two precision measurement gauges, Alpha and Omega. Price and Manufacturing cost data regarding these two gauges follow, Both products require a professional inspection service which is done by the Gemini's Inspection Department. Currently, only 340 hours of the professional inspection hours are available. Selling price per unit Professional Inspection hours required per unit Standard cost per unit: Variable Fixed Total Alpha $2,100 2 hrs $1,300 300 $ 1.600 Omega $2,400 3. hrs $1,500 200 $1.700 The company can sell 80 units of Alpha and 100 units of Omega. An outside supplier has offered to sell Alpha at the price of $1,800 each. The company is trying to determine the number of units to be produced for each product. A. You need to get Alphas before sell them. In obtaining Alpha, what two options are available? B. How much is the opportunity cost of Make & sell 1 unit of Alpha? C. How much is the UCM of Make & sell, net of opportunity cost? D. For each product, calculate contribution margin, net of opportunity cost, per inspection hour. E. Which product should be manufactured first? F. Determine the number of units to be produced and purchased for each product. G. Assume that the company has found an independent contractor that is willing to provide the required inspection service. The contractor charges on an hourly basis. What is the maximum price that Gemini is willing to pay per hour for the professional inspection?