Prepare computations to show whether or not make-it-work

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Question: Creative Link Ltd manufactures 55,500 units of cushions for use in its production line. At this level of activity, the cost per unit of cushion is as follows.

Direct Materials

$6.66

Direct labor

18.50

Variable overhead

4.44

Fixed overhead

16.65

 

 

Total cost

$46.25

An outside supplier has offered to sell 55,500 units of cushions to Make-it-Work Ltd for $35 per cushion.

Required:

Prepare computations to show whether or not Make-it-Work should continue to make the cushions or accept the outside supplier's offer in excel file

 

Reference no: EM133528281

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