Hadley inc makes a line of bathroom accessories because of

Reference no: EM13583519

Hadley, Inc. makes a line of bathroom accessories. Because of a decline in sales, the company has 10,000 machine hours of idle capacity available each year. This idle capacity could be used by the company to make, rather than buy, one of the components used in its production process. Hadley needs 5,000 units of this component each year. At present, the component is being purchased from an outside supplier at $7.50 per unit. Variable production cost for the component would be $4.10 per unit, and additional supervisory costs would be $18,000 per year. Already existing fixed costs that would be allocated to this part amount to $300,000 per year.

If the company decides to make the component, the overall annual net operating income that would result from making the component, rather than buying it, would be.

Reference no: EM13583519

Questions Cloud

Computer boutique sells computer equipment and home office : computer boutique sells computer equipment and home office furniture. currently the furniture product line takes up

A june sales forecast projects that 7200 units are going to : a june sales forecast projects that 7200 units are going to be sold at a price of 11.7 per unit. the desired ending

The wisbley company is contemplating the purchase of a : the wisbley company is contemplating the purchase of a helicopter for its executives to use in their business trips.

Finished goods inventory is 189000 if overhead applied to : finished goods inventory is 189000. if overhead applied to these goods is 75000 and the overhead rate is 120 of direct

Hadley inc makes a line of bathroom accessories because of : hadley inc. makes a line of bathroom accessories. because of a decline in sales the company has 10000 machine hours of

Snower corporation sells product g for 150 per unit the : snower corporation sells product g for 150 per unit the variable cost per unit is 105 and the fixed costs are 720000.

Ann terrell invests 1497380 now for a series of 2000 : ann terrell invests 14973.80 now for a series of 2000 annual returns payments beginning one year from now. ann will

The norman company has just signed a capital lease : the norman company has just signed a capital lease contract for equipment that requires annual lease payments of 5000

The finished goods units on hand on december 31 2014 was : yang company has budgeted the following unit salesnbspnbspnbsp 2015nbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbsp

User Account

All Pages