Question: How to solve this question Bancroft currently manufactures a subcomponent that is used in ts main product. offered to supply all the subcomponents needed at
Bancroft currently manufactures a subcomponent that is used in ts main product. offered to supply all the subcomponents needed at a price of $240. 0,000 subcomponents at the following manufacturing costs: (25 points) 2. A supplier has Per unit S90 60 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 50 270 Unit cost a. If Bancroft has no alternative uses for the manufacturing capacity, what would be the proft impact of buying the subcomponents from the supplier? b. If Bancroft has no alternative uses for the manufacturing capacity, what would be the maximum price per unit they would be willing to pay the supplier? c. Now assume Bancroft would avoid $640,000 in equipment leases and salaries if the subcomponent were purchased from the supplier. Now what would be the profit impact of buying from the supplier? t 000- 1760000
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