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Title: Cruise Company produces a part that is used in the manufacture of one of its products. The unit manu Post by: bernie2981 on Nov 14, 2015 Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,000 units, are as follows:
Direct materials $4.00 Direct labor $4.00 Variable manufacturing overhead $3.00 Fixed manufacturing overhead $1.00 Total cost $12.00 The fixed overhead costs are unavoidable. Assuming Cruise Company can purchase 6,000 units of the part from Suri Company for $14 each, and the facilities currently used to make the part could be rented out to another manufacturer for $24,000 a year, what should Cruise Company do? A) Make the part and save $6.00 per unit. B) Buy the part and save $2.00 per unit. C) Make the part and save $2.00 per unit. D) Buy the part and save $1.00 per unit. Title: Re: Cruise Company produces a part that is used in the manufacture of one of its products. The unit Post by: nuclei on Nov 19, 2015 Content hidden
Title: Re: Cruise Company produces a part that is used in the manufacture of one of its products. The unit manu Post by: bernie2981 on Dec 1, 2015 You're such a dedicated member, I very much appreciate the help.
Marking this solved ✓ Title: Re: Cruise Company produces a part that is used in the manufacture of one of its products. The unit Post by: sportychick on Apr 8, 2016 Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,000 units, are as follows: Direct materials $4.00 Direct labor $4.00 Variable manufacturing overhead $3.00 Fixed manufacturing overhead $1.00 Total cost $12.00 The fixed overhead costs are unavoidable. Assuming Cruise Company can purchase 6,000 units of the part from Suri Company for $14 each, and the facilities currently used to make the part could be rented out to another manufacturer for $24,000 a year, what should Cruise Company do? A) Make the part and save $6.00 per unit. B) Buy the part and save $2.00 per unit. C) Make the part and save $2.00 per unit. D) Buy the part and save $1.00 per unit. what do you do with the $24000?? |