What is the highest price that talboe could pay the outside

Assignment Help Accounting Basics

Reference no: EM13588651

Talboe Company makes wheels which it uses in the production of children's wagons. Talboe's costs to produce 110,000 wheels annually are as follows:

Direct material $22,000
Direct labor $33,000
Variable manufacturing overhead $16,500
Fixed manufacturing overhead $59,000
total $130,500

An outside supplier has offered to sell Talboe similar wheels for $0.80 per wheel. If the wheels are purchased from the outside supplier, $14,000 of annual fixed manufacturing overhead would be avoided and the facilities now being used to make the wheels would be rented to antoher company for $37,700 per year

What is the highest price that Talboe could pay the outside supplier for each wheel and still be economically indifferent between making or buying the wheels?

Reference no: EM13588651

Questions Cloud

Decrypt the ciphertext message uw dm nk qb ek which was : decrypt the ciphertext message uw dm nk qb ek which was encrypted using the digraphic cipher that sends the plaintext

Using the diffie-hellman key agreement protocol find the : 1 using the diffie-hellman key agreement protocol find the common key that can be used by two parties with keys k1 7

A lamp is suspended by a massless string from the ceiling : a lamp is suspended by a massless string from the ceiling of a descending elevator which decelerates at 1.7 ms2. if the

Puerto international has a branch in mexico that : puerto international has a branch in mexico that manufactures a garage door alarm for people with mountain bike racks

What is the highest price that talboe could pay the outside : talboe company makes wheels which it uses in the production of childrens wagons. talboes costs to produce 110000

What is the instantaneous power in w that you are supplying : you push a 2 kg block along a frictionless surface with a constant force. starting from rest the block reaches a final

Prepare a multiple-step income statement for 2013 applying : the following incorrect income statement was prepared by the accountant of the axel corporation axel corporation

Pets r us sells dog and cat food its monthly fixed costs : pets r us sells dog and cat food. its monthly fixed costs average 620000. cat food sales represent 80 of the companys

Find the sequence obtained by applying successively the : 1 encrypt the message buy now using the knapsack cipher based on the sequence obtained from the super-increasing

User Account

All Pages