What is correct make-or-buy decision

Assignment Help Financial Accounting

Reference no: EM13139248

Fornelli, Inc. can produce 100 units of a component part with the following costs:

Direct materials $30,000
Direct labor 13,000
Variable overhead 32,000
Fixed overhead 22,000

If Fornelli, Inc. can purchase the component part externally for $88,000 and only $8,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

Reference no: EM13139248

Questions Cloud

Compute the mean and variance of x : In a survey, 55% of the voters support a particular referendum. If 40 voters are chosen at random, and X is the number of voters that support this referendum, find the mean and variance of X.

Graces of the spirit : What are the gifts of the Spirit and how do they differ from the graces of the Spirit? Provide Biblical evidence to support your answer

Stock issuance costs and direct combination costs : How are stock issuance costs and direct combination costs treated in a business combination which is accounted for as an acquisition when the subsidiary will retain its incorporation?

How are histones involved in regulation : How are histones involved in regulation of eukaryotic gene regulation? Be sure to consider the dynamic nature of this regulation so you should discuss how genes can be turned on or off depending on the chromatin. Also, indicate how chromatin is us..

What is correct make-or-buy decision : If Fornelli, Inc. can purchase the component part externally for $88,000 and only $8,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

How much 1.0 m naoh should be added : A 1.0 L solution has a mixture of 0.05 M NaH2PO4 (pKa = 6.86) and 0.10 M Na2HPO4. How much 1.0 M NaOH should be added to bring the solution to pH 7.4?

Find evidence that proportion of incorrect reimbursements : At the 0.05 level of significance, is there evidence that the proportion of incorrect reimbursements in the population was greater than 0.10? Discuss the underlying assumptions of the test used in (a)

Sources for gospels : Our study group is trying to decipher the sources for the Gospels and wanting to know the order in which the Gospels were composed, who the proposed audiences and major themes as well.

Under what conditions would the attenuation take place : In order to study transcriptional regulation and attenuation in the tryptophan operon, the UGG codons for tryptophan in the trp leader mRNA sequence were mutated into UUG codons. Using this altered trp operon, please answer the following questions..

User Account

All Pages