Question: Question 9 1 points SA Nergaard Corporation makes 8.00 units of part 6.25 cach year. This part is used in one of the company's products.
Question 9 1 points SA Nergaard Corporation makes 8.00 units of part 6.25 cach year. This part is used in one of the company's products. The company Accounting Department reports the following cours of producing the put this level of activity Direct materiale Direct labor Variable manufacturing overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Una $ 6.70 $ 8.10 S 1.10 $ 2,00 $ 4.20 3 2.10 An outside supplier has offered to make and sell the part to the company for $1.20 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor can be wide. The special equipment used to make the part was purchased any years ago and has to walvage value or other w. The located general overhead represents fixed costs of the entire company. If the mide suppliers offer were accepted, only $2.000 of these allocated general overhead costs would be avoided. In addition, the space used to produce purt G25 would be used to make more of one of the company other products, generating additional segment margin of 516,000 per year for that product The annual financial advantage (disadvantage) for the company as a result of buying part G25 from the outside supplier should be: a($40,000) b. 516,000 (58,000) d($8,400)
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