Pelusos plant manager is considering making the headlights

Reference no: EM13592590

Peluso's plant manager is considering making the headlights now being purchased from outside supplier for $11.00 each.The Peluso plant has the equipment required to manufacture the headlights. The design engineer estimates that each headlight requires $4.00 of direct materials, $3.00 of direct labor. Puluso's plant overhead rate is 200 percent of direct labor dollars, and 40 percent of the overhead is fixed cost. If Peluso Co. manufactures the headlights, how much of a gain (loss) for each headlight will result?

Reference no: EM13592590

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