Question: I need all three requirements done E7-11 (Algo) Analyzing Make or Buy Decision [LO 7-2, 7.4] Frannie Fans currently manufactures celling fans that include remotes
![Decision [LO 7-2, 7.4] Frannie Fans currently manufactures celling fans that include](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2024/10/6719e48217025_1456719e481a8968.jpg)

E7-11 (Algo) Analyzing Make or Buy Decision [LO 7-2, 7.4] Frannie Fans currently manufactures celling fans that include remotes to operate them. The current cost to manufacture 10,140 remotes is as follows: Direct naterisls Direct Iabor Variable overhead rixed overhend total Frannie is approached by Lincoln Company, which offers to make the remotes for $18 per unit. Required: 1. Compute the difference in cost per unit between making and buying the remotes if none of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 2. Compute the difference in cost per unit between making and buying the romotes if $20,280 of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 3. What is the change in net income if fixed cost of $20,280 can be avoided and Frannie could rent out the factory space no longer in use for $20,280 ? Complete this question by entering your answers in the tabs below. Required: 1. Compute the difference in cost per unit between making and buying the remotes if none of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 2. Compute the difference in cost per unit between making and buying the remotes if $20,280 of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 3. What is the change in net income if fixed cost of $20,280 can be avoided and Frannie could rent out the factory space no longer in use for $20,280 ? Complete this question by entering your answers in the tabs below. E7-11 (Algo) Analyzing Make or Buy Decision [LO 7-2, 7-4] Frannie Fans currently manufactures celling fans that include remotes to operate them. The current cost to manufacture 10,140 remotes is as follows: Frannie is approached by Lincoln Company, which offers to make the remotes for $18 per unit. Required: 1. Compute the difference in cost per unit between making and buying the remotes if none of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 2. Compute the difference in cost per unit between making and buying the remotes if $20,280 of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes? 3. What is the change in net income if fixed cost of $20,280 can be avoided and Frannie could rent out the factory space no longer in use for $20,280 ? Complete this question by entering your answers in the tabs below. Compute the difference in cost per unit between making and buying the remotes if none of the fixed costs can be avoided. What is the change in net income, if Frannie Fans buys the remotes
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
