Turnington Company is currently manufacturing Part P132. It produces 52,400 units of Part P132 per year....

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Turnington Company is currently manufacturing Part P132. It produces 52,400 units of Part P132 per year. This part is used in the manufacturing of many products produced by Turnington. The breakdown of the cost per unit for P132 is shown below. Direct Materials $1.50 Direct Labor Variable Overhead $6.00 Fixed Overhead $3.00 $4.00 $14.50 Unit Cost The fixed overhead cost (at $4.00/unit above) would still remain with the company even if Turnington stops manufacturing Part P132. An outside supplier has offered to sell the same part to Turnington for $12.00. Currently, there is no alternative use for the capital assets used to produce Part P132 These capital assets will not be sold if the company chooses to buy Part P132. Do not enter.dollar signs.or commas in the input boxes. Use the negative sign for.anegative change in.operating income. a) Should Turnington Company make or buy Part P132? Cost to Make: $ 733600 Cost to Buy: $ 838400 Therefore Turnington should: Make b) What is the maximum price Turnington should be willing to pay an outside supplier for the part? Maximum Price: $ c) I1. Turnington buvs the part for $11 instead of making it, by how much will operating income increase or decrease? The fixed overhead cost (at $4.00/unit above) would still remain with the company even if Turnington stops manufacturing has offered to sell the same part to Turnington for $12.00. Currently, there is no alternative use for the capital assets used capital assets will not be sold if the company chooses to buy Part P132. Do not enter dollar signs or commas in the input boxes. Use the negative sign for a negative change in operating income. a) Should Turnington Company make or buy Part P132? Cost to Make: $ 733600 Cost to Buy: $ 838400 Therefore Turnington should: Make b) What is the maximum price Turnington should be willing to pay an outside supplier for the part? Maximum Price: $ C) If Turnington buys the part for $11 instead of making it, by how much will operating income increase or decrease? Change in operating income: $ Turnington Company is currently manufacturing Part P132. It produces 52,400 units of Part P132 per year. This part is used in the manufacturing of many products produced by Turnington. The breakdown of the cost per unit for P132 is shown below. Direct Materials $1.50 Direct Labor Variable Overhead $6.00 Fixed Overhead $3.00 $4.00 $14.50 Unit Cost The fixed overhead cost (at $4.00/unit above) would still remain with the company even if Turnington stops manufacturing Part P132. An outside supplier has offered to sell the same part to Turnington for $12.00. Currently, there is no alternative use for the capital assets used to produce Part P132 These capital assets will not be sold if the company chooses to buy Part P132. Do not enter.dollar signs.or commas in the input boxes. Use the negative sign for.anegative change in.operating income. a) Should Turnington Company make or buy Part P132? Cost to Make: $ 733600 Cost to Buy: $ 838400 Therefore Turnington should: Make b) What is the maximum price Turnington should be willing to pay an outside supplier for the part? Maximum Price: $ c) I1. Turnington buvs the part for $11 instead of making it, by how much will operating income increase or decrease? The fixed overhead cost (at $4.00/unit above) would still remain with the company even if Turnington stops manufacturing has offered to sell the same part to Turnington for $12.00. Currently, there is no alternative use for the capital assets used capital assets will not be sold if the company chooses to buy Part P132. Do not enter dollar signs or commas in the input boxes. Use the negative sign for a negative change in operating income. a) Should Turnington Company make or buy Part P132? Cost to Make: $ 733600 Cost to Buy: $ 838400 Therefore Turnington should: Make b) What is the maximum price Turnington should be willing to pay an outside supplier for the part? Maximum Price: $ C) If Turnington buys the part for $11 instead of making it, by how much will operating income increase or decrease? Change in operating income: $

Answer rating: 100% (QA)

Unit cost of part P132 Direct material Direct labor variable manufacturing overhead 150 3 6 ... View the full answer