Question: Please help me solve this by 10 pm I will give a great review! Exercise 12-11 Make or Buy Decision (LO12-3] ats Han Products manufactures
Please help me solve this by 10 pm I will give a great review!

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Exercise 12-11 Make or Buy Decision (LO12-3] ats Han Products manufactures 26,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: ook Direct materials $ 4.00 Direct labor 9.00 Variable manufacturing 2.00 overhead Fixed manufacturing overhead 9.00 Total cost per part $24.00 Tint erences An outside supplier has offered to sell 26,000 units of part 5-6 each year to Han Products for $20 per part If Han Products accepts this offer, the facilities now being used to manufacture part 5-6 could be rented to another company at an annual rental of $76,000. 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: What is the financial advantage (disadvantage) accepting the outside supplier's offer? Financial advantage Problem 12-24 Shutting Down or Continuing to Operate a Plant [L012-2] Birch Company normally produces and sells 45,000 units of RG-6 each month. The selling price is $30 per unit, variable costs are $10 per unit, fixed manufacturing overhead costs total $170,000 per month, and fixed selling costs total $46,000 per month. Employment-contract strikes in the companies that purchase the bulk of the RG-6 units have caused Birch Company's sales to temporarily drop to only 12,000 units per month. Birch Company estimates that the strikes will last for two months, after which time sales of RG-6 should return to normal. Due to the current low level of sales, Birch Company is thinking about closing down its own plant during the strike, which would reduce its fixed manufacturing overhead costs by $45,000 per month and its fixed selling costs by 10%. Start-up costs at the end of the shutdown period would total $14,000. Because Birch Company uses Lean Production methods, no inventories are on hand. ces Required: 1. What is the financial advantage (disadvantage) if Birch closes its own plant for two months? 2. Should Birch close the plant for two months? 3. At what level of unit sales for the two-month period would Birch Company be indifferent between closing the plant or keeping it open? Complete this question by entering your answers in the tabs below. Required Required Required 1 3 At what level of unit sales for the two-month period would Birch Company be indifferent between closing the plant or keeping it open? Unit sales required for Birch to be indifferent
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