Problem 2-71 (Algo) Cost Allocation and Regulated Prices (LO 2-3)
The City of Imperial Falls contracts with Evergreen Waste Collection to provide solid waste collection to households and businesses. Until recently, Evergreen had an exclusive franchise to provide this service in Imperial Falls, which meant that other waste collection firms could not operate legally in the city. The price per pound of waste collected was regulated at 20 percent above the average total cost of collection.
Cost data for the most recent year of operations for Evergreen
are as follows.
| Administrative cost | $ | 414,000 | |
| Operating costs—trucks | 1,350,000 | ||
| Other collection costs | 334,000 | ||
Data on customers for the most recent year are as follows.
| Households | Businesses | |
| Number of customers | 13,400 | 5,800 |
| Waste collected (tons) | 5,400 | 14,800 |
The City Council of Imperial Falls is considering allowing other private waste haulers to collect waste from businesses, but not from households. Service to businesses from other waste collection firms would not be subject to price regulation. Based on information from neighboring cities, the price that other private waste collection firms will charge is estimated to be $0.04 per pound (= $80 per ton). (1 ton = 2,000 pounds)
Evergreen's CEO has approached the city council with a proposal
to change the way costs are allocated to households and businesses,
which will result in different rates for households and businesses.
She proposes that administrative costs and truck operating costs be
allocated based on the number of customers and the other collection
costs be allocated based on pounds collected. The total costs
allocated to households would then be divided by the estimated
number of pounds collected from households to determine the cost of
collection. The rate would then be 20 percent above the cost. The
rate for businesses would be determined using the same
calculation.
Required:
a. Based on cost data from the most recent year, what is the price per pound charged by Evergreen for waste collection under the current system (the same rate for both types of customers)?
b. Based on cost and waste data from the most recent year, what would be the price per pound charged to households and to businesses by Evergreen for waste collection if the CEO’s proposal were accepted?
| Households | Businesses | |
| Allocated cost per customer | $92 correct | $92 answer correct |
| Total allocated cost | $ | $ |
| Average allocated cost per pound | $ | $ |
| Price | $ | $ |
I am STUMPED. I cannot get the correct answer for total allocated cost, average allocated cost per pound or price. Help my accounting gods!
In: Accounting
Thornton Academy is a profit-oriented education business. Thornton provides remedial training for high school students who have fallen behind in their classroom studies. It charges its students $1,895 per course. During the previous year, Thornton provided instruction for 1,000 students. The income statement for the company follows:
| Revenue | $ | 1,895,000 | |
| Cost of instructors | (1,292,000 | ) | |
| Overhead costs | (370,000 | ) | |
| Net income | $ | 233,000 | |
The company president, Andria Rossi, indicated in a discussion with
the accountant, Sam Trent, that she was extremely pleased with the
growth in the area of computer-assisted instruction. She observed
that this department served 200 students using only two part-time
instructors. In contrast, the classroom-based instructional
department required 32 instructors to teach 800 students. Ms. Rossi
noted that the per-student cost of instruction was dramatically
lower for the computer-assisted department. She based her
conclusion on the following information:
Thornton pays its part-time instructors an average of $38,000 per
year. The total cost of instruction and the cost per student are
computed as follows:
| Type of Instruction | Computer-Assisted | Classroom | |||||
| Number of instructors (a) | 2 | 32 | |||||
| Number of students (b) | 200 | 800 | |||||
| Total cost (c = a × $38,000) | $ | 76,000 | $ | 1,216,000 | |||
| Cost per student (c ÷ b) | $ | 380 | $ | 1,520 | |||
Assuming that overhead costs were distributed equally across the
student population, Ms. Rossi concluded that the cost of
instructors was the critical variable in the company’s capacity to
generate profits. Based on her analysis, her strategic plan called
for heavily increased use of computer-assisted instruction.
Mr. Trent was not so sure that computer-assisted instruction should
be stressed. After attending a seminar on activity-based costing
(ABC), he believed that the allocation of overhead cost could be
more closely traced to the different types of learning activities.
To facilitate an activity-based analysis, he developed the
following information about the costs associated with
computer-assisted versus classroom instructional activities. He
identified $288,000 of overhead costs that were directly traceable
to computer-assisted activities, including the costs of computer
hardware, software, and technical assistance. He believed the
remaining $82,000 of overhead costs should be allocated to the two
instructional activities based on the number of students enrolled
in each program.
Required
Based on the preceding information, determine the total cost and the cost per student to provide courses through computer-assisted instruction versus classroom instruction. (Do not round intermediate calculations. Round "Cost per student" to 2 decimal places.)
|
In: Accounting
“That old equipment for producing carburetors is worn out,” said Bill Seebach, president of Hondrich Company. “We need to make a decision quickly.” The company is trying to decide whether it should rent new equipment and continue to make its carburetors internally or whether it should discontinue production of its carburetors and purchase them from an outside supplier. The alternatives follow:
Alternative 1: Rent new
equipment for producing the carburetors for $198,000 per
year.
Alternative 2: Purchase
carburetors from an outside supplier for $19.00 each.
Hondrich Company’s costs per unit of
producing the carburetors internally (with the old equipment) are
given below. These costs are based on a current activity level of
30,000 units per year:
| Direct materials | $ | 5.20 | |
| Direct labour | 7.00 | ||
| Variable overhead | 2.40 | ||
| Fixed overhead ($3.30 supervision, $1.80
depreciation, and $4.00 general company overhead) |
9.10 | ||
| Total cost per unit | $ | 23.70 | |
The new equipment would be more
efficient and, according to the manufacturer, would reduce direct
labour costs and variable overhead costs by 25%. Supervision cost
($99,000 per year) and direct materials cost per unit would not be
affected by the new equipment. The new equipment’s capacity would
be 50,000 carburetors per year.
The total general company overhead
would be unaffected by this decision.
Required:
1. Seebach is unsure what the company should do
and would like an analysis showing the unit costs and total costs
for each of the two alternatives given above. Assume that 30,000
carburetors are needed each year.
a. What will be the total relevant cost
of 30,000 subassemblies if they are manufactured internally as
compared to being purchased?
b. What would be the per unit cost of the each subassembly manufactured internally? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
c. Which course of action would you recommend to the president?
Indifferent between the two alternatives
Manufacture internally
Purchase from the outside supplier
2. Seebach is unsure what the company should do and would like an analysis showing the unit costs and total costs for each of the two alternatives given above.
a-1. What will be the total relevant cost
of 44,000 subassemblies if they are manufactured internally?
a-2. What would be the per unit cost of subassembly? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
a-3. Which course of action would you recommend if 44,000 assemblies are needed each year?
Manufacture internally
Indifferent between the two alternatives
Purchase from the outside supplier
b-1. What will be the total relevant cost of 50,000 subassemblies if they are manufactured internally?
b-2. What would be the per unit cost of subassembly? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b-3. Which course of action would you recommend if 50,000 assemblies are needed each year?
Indifferent between the two alternatives
Purchase from the outside supplier
Manufacture internally
In: Accounting
“That old equipment for producing carburetors is worn out,” said Bill Seebach, president of Hondrich Company. “We need to make a decision quickly.” The company is trying to decide whether it should rent new equipment and continue to make its carburetors internally or whether it should discontinue production of its carburetors and purchase them from an outside supplier. The alternatives follow:
Alternative 1: Rent new
equipment for producing the carburetors for $176,000 per
year.
Alternative 2: Purchase
carburetors from an outside supplier for $20.70 each.
Hondrich Company’s costs per unit of
producing the carburetors internally (with the old equipment) are
given below. These costs are based on a current activity level of
32,000 units per year:
| Direct materials | $ | 5.70 | |
| Direct labour | 10.00 | ||
| Variable overhead | 2.00 | ||
| Fixed overhead ($2.75 supervision, $1.80
depreciation, and $4.00 general company overhead) |
8.55 | ||
| Total cost per unit | $ | 26.25 | |
The new equipment would be more
efficient and, according to the manufacturer, would reduce direct
labour costs and variable overhead costs by 25%. Supervision cost
($88,000 per year) and direct materials cost per unit would not be
affected by the new equipment. The new equipment’s capacity would
be 50,000 carburetors per year.
The total general company overhead
would be unaffected by this decision.
Required:
1. Seebach is unsure what the company should do
and would like an analysis showing the unit costs and total costs
for each of the two alternatives given above. Assume that 32,000
carburetors are needed each year.
a. What will be the total relevant cost
of 32,000 subassemblies if they are manufactured internally as
compared to being purchased?
b. What would be the per unit cost of the each subassembly manufactured internally? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
c. Which course of action would you recommend to the president?
Indifferent between the two alternatives
Manufacture internally
Purchase from the outside supplier
2. Seebach is unsure what the company should do and would like an analysis showing the unit costs and total costs for each of the two alternatives given above.
a-1. What will be the total relevant cost
of 44,000 subassemblies if they are manufactured internally?
a-2. What would be the per unit cost of subassembly? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
a-3. Which course of action would you recommend if 44,000 assemblies are needed each year?
Purchase from the outside supplier
Manufacture internally
Indifferent between the two alternatives
b-1. What will be the total relevant cost of 50,000 subassemblies if they are manufactured internally?
b-2. What would be the per unit cost of subassembly? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b-3. Which course of action would you recommend if 50,000 assemblies are needed each year?
Purchase from the outside supplier
Indifferent between the two alternatives
Manufacture internally
3. Not available in Connect.
In: Accounting
“That old equipment for producing carburetors is worn out,” said Bill Seebach, president of Hondrich Company. “We need to make a decision quickly.” The company is trying to decide whether it should rent new equipment and continue to make its carburetors internally or whether it should discontinue production of its carburetors and purchase them from an outside supplier. The alternatives follow:
Alternative 1: Rent new
equipment for producing the carburetors for $140,000 per
year.
Alternative 2: Purchase
carburetors from an outside supplier for $19.35 each.
Hondrich Company’s costs per unit of
producing the carburetors internally (with the old equipment) are
given below. These costs are based on a current activity level of
35,000 units per year:
| Direct materials | $ | 5.40 | |
| Direct labour | 10.00 | ||
| Variable overhead | 1.60 | ||
| Fixed overhead ($2.00 supervision, $1.80
depreciation, and $4.00 general company overhead) |
7.80 | ||
| Total cost per unit | $ | 24.80 | |
The new equipment would be more
efficient and, according to the manufacturer, would reduce direct
labour costs and variable overhead costs by 25%. Supervision cost
($70,000 per year) and direct materials cost per unit would not be
affected by the new equipment. The new equipment’s capacity would
be 50,000 carburetors per year.
The total general company overhead
would be unaffected by this decision.
Required:
1. Seebach is unsure what the company should do
and would like an analysis showing the unit costs and total costs
for each of the two alternatives given above. Assume that 35,000
carburetors are needed each year.
a. What will be the total relevant cost
of 35,000 subassemblies if they are manufactured internally as
compared to being purchased?
b. What would be the per unit cost of the each subassembly manufactured internally? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
c. Which course of action would you recommend to the president?
Manufacture internally
Indifferent between the two alternatives
Purchase from the outside supplier
2. Seebach is unsure what the company should do and would like an analysis showing the unit costs and total costs for each of the two alternatives given above.
a-1. What will be the total relevant cost
of 40,000 subassemblies if they are manufactured internally?
a-2. What would be the per unit cost of subassembly? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
a-3. Which course of action would you recommend if 40,000 assemblies are needed each year?
Indifferent between the two alternatives
Purchase from the outside supplier
Manufacture internally
b-1. What will be the total relevant cost of 50,000 subassemblies if they are manufactured internally?
b-2. What would be the per unit cost of subassembly? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b-3. Which course of action would you recommend if 50,000 assemblies are needed each year?
Indifferent between the two alternatives
Purchase from the outside supplier
Manufacture internally
In: Accounting
“That old equipment for producing carburetors is worn out,” said Bill Seebach, president of Hondrich Company. “We need to make a decision quickly.” The company is trying to decide whether it should rent new equipment and continue to make its carburetors internally or whether it should discontinue production of its carburetors and purchase them from an outside supplier. The alternatives follow:
Alternative 1: Rent new
equipment for producing the carburetors for $198,000 per
year.
Alternative 2: Purchase
carburetors from an outside supplier for $19.00 each.
Hondrich Company’s costs per unit of
producing the carburetors internally (with the old equipment) are
given below. These costs are based on a current activity level of
30,000 units per year:
| Direct materials | $ | 5.20 | |
| Direct labour | 7.00 | ||
| Variable overhead | 2.40 | ||
| Fixed overhead ($3.30 supervision, $1.80
depreciation, and $4.00 general company overhead) |
9.10 | ||
| Total cost per unit | $ | 23.70 | |
The new equipment would be more
efficient and, according to the manufacturer, would reduce direct
labour costs and variable overhead costs by 25%. Supervision cost
($99,000 per year) and direct materials cost per unit would not be
affected by the new equipment. The new equipment’s capacity would
be 50,000 carburetors per year.
The total general company overhead
would be unaffected by this decision.
Required:
1. Seebach is unsure what the company should do
and would like an analysis showing the unit costs and total costs
for each of the two alternatives given above. Assume that 30,000
carburetors are needed each year.
a. What will be the total relevant cost
of 30,000 subassemblies if they are manufactured internally as
compared to being purchased?
b. What would be the per unit cost of the each subassembly manufactured internally? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
c. Which course of action would you recommend to the president?
Indifferent between the two alternatives
Purchase from the outside supplier
Manufacture internally
2. Seebach is unsure what the company should do and would like an analysis showing the unit costs and total costs for each of the two alternatives given above.
a-1. What will be the total relevant cost
of 44,000 subassemblies if they are manufactured internally?
a-2. What would be the per unit cost of subassembly? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
a-3. Which course of action would you recommend if 44,000 assemblies are needed each year?
Manufacture internally
Indifferent between the two alternatives
Purchase from the outside supplier
b-1. What will be the total relevant cost of 50,000 subassemblies if they are manufactured internally?
b-2. What would be the per unit cost of subassembly? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b-3. Which course of action would you recommend if 50,000 assemblies are needed each year?
Indifferent between the two alternatives
Manufacture internally
Purchase from the outside supplier
3. Not available in Connect.
In: Accounting
Required information
[The following information applies to the questions
displayed below.]
Marcelino Co.'s March 31 inventory of raw materials is $84,000. Raw
materials purchases in April are $550,000, and factory payroll cost
in April is $384,000. Overhead costs incurred in April are:
indirect materials, $55,000; indirect labor, $24,000; factory rent,
$31,000; factory utilities, $20,000; and factory equipment
depreciation, $56,000. The predetermined overhead rate is 50% of
direct labor cost. Job 306 is sold for $660,000 cash in April.
Costs of the three jobs worked on in April follow.
| Job 306 | Job 307 | Job 308 | ||||||||||
| Balances on March 31 | ||||||||||||
| Direct materials | $ | 27,000 | $ | 37,000 | ||||||||
| Direct labor | 23,000 | 16,000 | ||||||||||
| Applied overhead | 11,500 | 8,000 | ||||||||||
| Costs during April | ||||||||||||
| Direct materials | 131,000 | 210,000 | $ | 120,000 | ||||||||
| Direct labor | 105,000 | 153,000 | 102,000 | |||||||||
| Applied overhead | ? | ? | ? | |||||||||
| Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
rev: 03_15_2018_QC_CS-121813
Required:
1. Determine the total of each production cost
incurred for April (direct labor, direct materials, and applied
overhead), and the total cost assigned to each job (including the
balances from March 31).
Required information
[The following information applies to the questions
displayed below.]
Marcelino Co.'s March 31 inventory of raw materials is $84,000. Raw
materials purchases in April are $550,000, and factory payroll cost
in April is $384,000. Overhead costs incurred in April are:
indirect materials, $55,000; indirect labor, $24,000; factory rent,
$31,000; factory utilities, $20,000; and factory equipment
depreciation, $56,000. The predetermined overhead rate is 50% of
direct labor cost. Job 306 is sold for $660,000 cash in April.
Costs of the three jobs worked on in April follow.
| Job 306 | Job 307 | Job 308 | ||||||||||
| Balances on March 31 | ||||||||||||
| Direct materials | $ | 27,000 | $ | 37,000 | ||||||||
| Direct labor | 23,000 | 16,000 | ||||||||||
| Applied overhead | 11,500 | 8,000 | ||||||||||
| Costs during April | ||||||||||||
| Direct materials | 131,000 | 210,000 | $ | 120,000 | ||||||||
| Direct labor | 105,000 | 153,000 | 102,000 | |||||||||
| Applied overhead | ? | ? | ? | |||||||||
| Status on April 30 | Finished (sold) | Finished (unsold) | In process | |||||||||
rev: 03_15_2018_QC_CS-121813
Required:
1. Determine the total of each production cost
incurred for April (direct labor, direct materials, and applied
overhead), and the total cost assigned to each job (including the
balances from March 31).
|
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In: Accounting
“That old equipment for producing carburetors is worn out,” said Bill Seebach, president of Hondrich Company. “We need to make a decision quickly.” The company is trying to decide whether it should rent new equipment and continue to make its carburetors internally or whether it should discontinue production of its carburetors and purchase them from an outside supplier. The alternatives follow:
Alternative 1: Rent new
equipment for producing the carburetors for $175,000 per
year.
Alternative 2: Purchase
carburetors from an outside supplier for $17.80 each.
Hondrich Company’s costs per unit of
producing the carburetors internally (with the old equipment) are
given below. These costs are based on a current activity level of
35,000 units per year:
| Direct materials | $ | 6.10 | |
| Direct labour | 7.00 | ||
| Variable overhead | 1.60 | ||
| Fixed overhead ($2.50 supervision, $1.90
depreciation, and $5.00 general company overhead) |
9.40 | ||
| Total cost per unit | $ | 24.10 | |
The new equipment would be more
efficient and, according to the manufacturer, would reduce direct
labour costs and variable overhead costs by 25%. Supervision cost
($87,500 per year) and direct materials cost per unit would not be
affected by the new equipment. The new equipment’s capacity would
be 62,500 carburetors per year.
The total general company overhead
would be unaffected by this decision.
Required:
1. Seebach is unsure what the company should do
and would like an analysis showing the unit costs and total costs
for each of the two alternatives given above. Assume that 35,000
carburetors are needed each year.
a. What will be the total relevant cost
of 35,000 subassemblies if they are manufactured internally as
compared to being purchased?
b. What would be the per unit cost of the each subassembly manufactured internally? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
c. Which course of action would you recommend to the president?
Manufacture internally
Purchase from the outside supplier
Indifferent between the two alternatives
2. Seebach is unsure what the company should do and would like an analysis showing the unit costs and total costs for each of the two alternatives given above.
a-1. What will be the total relevant cost
of 50,000 subassemblies if they are manufactured internally?
a-2. What would be the per unit cost of subassembly? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
a-3. Which course of action would you recommend if 50,000 assemblies are needed each year?
Manufacture internally
Purchase from the outside supplier
Indifferent between the two alternatives
b-1. What will be the total relevant cost of 62,500 subassemblies if they are manufactured internally?
b-2. What would be the per unit cost of subassembly? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b-3. Which course of action would you recommend if 62,500 assemblies are needed each year?
Indifferent between the two alternatives
Purchase from the outside supplier
Manufacture internally
3. Not available in Connect.
In: Accounting
“That old equipment for producing carburetors is worn out,” said Bill Seebach, president of Hondrich Company. “We need to make a decision quickly.” The company is trying to decide whether it should rent new equipment and continue to make its carburetors internally or whether it should discontinue production of its carburetors and purchase them from an outside supplier. The alternatives follow:
Alternative 1: Rent new
equipment for producing the carburetors for $92,000 per year.
Alternative 2: Purchase
carburetors from an outside supplier for $18.80 each.
Hondrich Company’s costs per unit of
producing the carburetors internally (with the old equipment) are
given below. These costs are based on a current activity level of
40,000 units per year:
| Direct materials | $ | 5.90 | |
| Direct labour | 10.00 | ||
| Variable overhead | 3.20 | ||
| Fixed overhead ($1.15 supervision, $1.90
depreciation, and $5.00 general company overhead) |
8.05 | ||
| Total cost per unit | $ | 27.15 | |
The new equipment would be more
efficient and, according to the manufacturer, would reduce direct
labour costs and variable overhead costs by 25%. Supervision cost
($46,000 per year) and direct materials cost per unit would not be
affected by the new equipment. The new equipment’s capacity would
be 50,000 carburetors per year.
The total general company overhead
would be unaffected by this decision.
Required:
1. Seebach is unsure what the company should do
and would like an analysis showing the unit costs and total costs
for each of the two alternatives given above. Assume that 40,000
carburetors are needed each year.
a. What will be the total relevant cost
of 40,000 subassemblies if they are manufactured internally as
compared to being purchased?
b. What would be the per unit cost of the each subassembly manufactured internally? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
c. Which course of action would you recommend to the president?
Indifferent between the two alternatives
Purchase from the outside supplier
Manufacture internally
2. Seebach is unsure what the company should do and would like an analysis showing the unit costs and total costs for each of the two alternatives given above.
a-1. What will be the total relevant cost
of 46,000 subassemblies if they are manufactured internally?
a-2. What would be the per unit cost of subassembly? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
a-3. Which course of action would you recommend if 46,000 assemblies are needed each year?
Manufacture internally
Purchase from the outside supplier
Indifferent between the two alternatives
b-1. What will be the total relevant cost of 50,000 subassemblies if they are manufactured internally?
b-2. What would be the per unit cost of subassembly? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b-3. Which course of action would you recommend if 50,000 assemblies are needed each year?
Indifferent between the two alternatives
Manufacture internally
Purchase from the outside supplier
In: Accounting
|
“That old equipment for producing carburetors is worn out,” said Bill Seebach, president of Hondrich Company. “We need to make a decision quickly.” The company is trying to decide whether it should rent new equipment and continue to make its carburetors internally or whether it should discontinue production of its carburetors and purchase them from an outside supplier. The alternatives follow: |
| Alternative 1: Rent new equipment for producing the carburetors for $100,000 per year. |
| Alternative 2: Purchase carburetors from an outside supplier for $17.40 each. |
|
Hondrich Company’s costs per unit of producing the carburetors internally (with the old equipment) are given below. These costs are based on a current activity level of 40,000 units per year: |
| Direct materials | $ | 6.00 | |
| Direct labour | 8.00 | ||
| Variable overhead | 3.20 | ||
| Fixed overhead
($1.25 supervision, $1.80 depreciation, and $4.00 general company overhead) |
7.05 | ||
| Total cost per unit | $ | 24.25 | |
|
The new equipment would be more efficient and, according to the manufacturer, would reduce direct labour costs and variable overhead costs by 25%. Supervision cost ($50,000 per year) and direct materials cost per unit would not be affected by the new equipment. The new equipment’s capacity would be 62,500 carburetors per year. |
| The total general company overhead would be unaffected by this decision. |
| Required: |
| 1. |
Seebach is unsure what the company should do and would like an analysis showing the unit costs and total costs for each of the two alternatives given above. Assume that 40,000 carburetors are needed each year. |
| a. |
What will be the total relevant cost of 40,000 subassemblies if they are manufactured internally as compared to being purchased? |
| b. |
What would be the per unit cost of the each subassembly manufactured internally? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| c. |
Which course of action would you recommend to the president? |
||||||
|
| 2. |
Seebach is unsure what the company should do and would like an analysis showing the unit costs and total costs for each of the two alternatives given above. |
| a-1. |
What will be the total relevant cost of 50,000 subassemblies if they are manufactured internally? |
| a-2. |
What would be the per unit cost of subassembly? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| a-3. |
Which course of action would you recommend if 50,000 assemblies are needed each year? |
||||||
|
| b-1. |
What will be the total relevant cost of 62,500 subassemblies if they are manufactured internally? |
| b-2. |
What would be the per unit cost of subassembly? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| b-3. |
Which course of action would you recommend if 62,500 assemblies are needed each year? |
||||||
|
In: Accounting