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Title: The managers of Desks Inc. are considering purchasing the handles for the desks from an outside ... Post by: LiChan on Dec 13, 2016 The managers of Desks Inc. are considering purchasing the handles for the desks from an outside vendor for $4.50 each. The following cost information is provided to assist in the decision:
Per unit Direct material $1.75 Direct labor 1.45 Variable overhead .70 Fixed overhead 1.10 Total $5.00 Should Desk Inc. continue to manufacture the handles in house or should it purchase the handles from an outside vendor, if fixed cost remains unchanged? A) Yes, they should manufacture the handles in house, it costs $3.20 to make and $4.50 to purchase. B) No, it's always better to buy from someone else and not have the hassles of producing the product in house. C) Yes, they should manufacture the handles in house, it costs $3.90 to make and $4.50 to purchase. D) No, they should not manufacture the handles in house, it costs $5.00 to make and $4.50 to purchase. Title: Re: The managers of Desks Inc. are considering purchasing the handles for the desks from an outside ... Post by: suryoyo on Dec 14, 2016 Content hidden
Title: Re: The managers of Desks Inc. are considering purchasing the handles for the desks from an outside ... Post by: LiChan on Jan 26, 2017 Was looking for this exact answer, thanks
Title: Re: The managers of Desks Inc. are considering purchasing the handles for the desks from an outside ... Post by: suryoyo on Feb 14, 2017 Alright!
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