Makes inexpensive plastic insulated coolers

Assignment Help Operation Management

Reference no: EM131663268

The XYZ Corporation makes inexpensive plastic insulated coolers. Their best selling model is the 48 quart cooler. The following cost structure is associated with the manufacturing of the 48 quart coolers: Total Units Produced 175,000 Total Direct Materials $900,000 Total Direct Labor $800,000 Total Variable Overhead $600,000 Total Allocated Fixed Overhead $450,000 The ABC Cooler Company offers to make the 48 quart coolers for XYZ Corporation for $26.00 each. If the offer is accepted that allocated fixed overhead will be re-allocated to other divisions, meaning the costs will still be incurred. What are the total costs associated with manufacturing the 48 quart coolers at XYZ? What are the total costs associated with buying the 48 quart coolers from ABC? Based on cost of products, what decision should XYZ make regarding the manufacturing of the 48 quart coolers? Explain this decision.

Reference no: EM131663268

Questions Cloud

Properties of complex projects : Assessment - Explain the causes, environments, and properties of complex projects. - Identify different tools and techniques to aid a project manager manage

Model with managerial roles : Henry Mintzberg studied managerial roles and created a model with managerial roles. What are those roles? What does each role require?

Describe mendez ethical responsibilities : Professional ethics and reporting division performance. Maria Mendez is division controller and James Dalton is division manager of the Hestor Shoe Company.

Dislike about the organic organization : Have you ever worked in an organic organization? What did you like or dislike about the organic organization?

Makes inexpensive plastic insulated coolers : The XYZ Corporation makes inexpensive plastic insulated coolers. What are the total costs associated with buying the 48 quart coolers from ABC?

Post a description of at least two data collection problems : Post a description of at least two data collection problems that the reanalysis of Levitt and List might bring to the Hawthorne effect.

Concepts of the bcg matrix and ge matrix : Describe the concepts of the BCG matrix and GE matrix that are used to determine organizational strategy.

Solving case of the sizemore landscaping : Five-step decision-making process, service firm. Sizemore Landscaping is a firm that provides commercial landscaping and grounds maintenance services.

Estimated electrical costs for the month : If January of the next year was budgeted for 3800 occupancy days, what would be the estimated electrical costs for the month

User Account

All Pages