Reference no: EM132535864
Diehl Corporation manufactures a variety of parts for use in its product. The company has always produced all of the necessary parts for its product, including all of the electronic circuits. The company sells 21,000 units of its product per year. An outside supplier has offered to sell electronic circuits to the company for a cost of $39 per unit.
To evaluate this offer, the company has gathered the following information relating to its own cost of producing the electronic circuits internally:
Per Unit 21,000 units per year
Direct Material 18 378,000
Direct Labor 11 231,000
Variable Manufacturing Overheard 3 63,000
Fixed MO, Traceable 3 63,000
Fixed MO, allocated 6 126,000
total Cost 41 861,000
- One-third supervisory salary; two-thirds depreciation of special equipment (no resale value).
Question 1: Suppose that if the electronic circuits were purchased, the division supervisor position could be eliminated. Fixed manufacturing overhead will be allocated to other products made by the company. Also, the company could use the freed production capacity to launch a new product. The segment margin of the new product would be $210,000 per year. Given this new assumption, how much would be the financial advantage of buying 21,000 electronic circuits from the outside supplier?
|
Plates of a charged parallel plate air capacitor
: A dielectric is inserted between the plates of a charged parallel plate air capacitor. Describe whether each of the following
|
|
What the spending variance for bus operating costs
: The actual cost for bus operating costs in November was $305,100. The spending variance for bus operating costs in November would be closest to
|
|
What is the minimum sales price per unit
: Tarind Corporation manufactures shirts, What is the minimum (i.e., the break-even) sales price per unit that the company should charge for this special order?
|
|
Unit 2 Business Resources Assignment
: Unit 2 Business Resources Assignment Help and Solution - develop learner knowledge of the range of human, physical, technological and financial resources.
|
|
How much would be the financial advantage of buying
: Given the new assumption, how much would be the financial advantage of buying 21,000 electronic circuits from the outside supplier?
|
|
How do managers evaluate performance in decentralized
: How Do Managers Evaluate Performance in Decentralized Organizations? Include Introduction,Explanation, Advantages, Disadvantages
|
|
How do managers evaluate performance
: How Do Managers Evaluate Performance Using Cost Variance Analysis? Include Introduction, Explanation, Advantages/Disadvantages
|
|
Explain the importance of checklists and planning
: Explain the importance of checklists and planning from your studies this week. How would they be applied to projects requiring both mobile and desktop.
|
|
How much is the company flexible budget operating income
: In July, the company operated 52 buses and served a total of 3,250 passengers. How much is the company's flexible budget operating income for July?
|