Han Products manufactures 32.000 units of part S-6 each year for use on its production line...
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Han Products manufactures 32.000 units of part S-6 each year for use on its production line At this level of activity. the cost per unit for part S-6 Direct materials Direct labor Variable manuf acturing overhead Fixed manufacturing overtead $ 3.60 9.00 2.40 6,00 $ 21.00 Total cost per part An outside supplier has offered to sell 32,000 units of part S-6 each year to Han Products for $19 per part If Han Products accepts this offer, the facilities now being used to manufacture part S 6 could be rented to another company ot on annual rental of $82,000 However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier Required: Whot is the financiel advantage (disadvantage) of accepting the outside supplier's offer? Han Products manufactures 32.000 units of part S-6 each year for use on its production line At this level of activity. the cost per unit for part S-6 Direct materials Direct labor Variable manuf acturing overhead Fixed manufacturing overtead $ 3.60 9.00 2.40 6,00 $ 21.00 Total cost per part An outside supplier has offered to sell 32,000 units of part S-6 each year to Han Products for $19 per part If Han Products accepts this offer, the facilities now being used to manufacture part S 6 could be rented to another company ot on annual rental of $82,000 However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier Required: Whot is the financiel advantage (disadvantage) of accepting the outside supplier's offer?
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Calculate financial advantage disadvantage of accepting the outside suppliers offer M... View the full answer
Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
Posted Date:
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