Would your answer change if ellen electric could use the

Reference no: EM13592460

Department A Department B Department C Total Sales $300,000 $280,000 $120,000 $700,000

Variable Expenses 160,000 175,000 105,000 440,000

Contribution Margin 140,000 105,000 15,000 260,000

Fixed Expenses 65,000 35,000 40,000 140,000
Net Income $75,000 $70,000 $(25,000) $120,000

Ellen Electric has an offer from a potential supplier to provide 40,000 units at $65 each that Ellen Electric now manufactures at a total cost of $75 per unit. The manufacturing costs for 40,000 units are: direct materials $900,000; direct labor $450,000; variable overhead $900,000; and fixed overhead $750,000. All costs except $500,000 in fixed overhead will be avoided if the parts are purchased.

(B) Would your answer change if Ellen Electric could use the capacity that would become available to produce additional income of $125,000? Explain

Reference no: EM13592460

Questions Cloud

Determine the amount of depreciation expense to be recorded : teague company purchased a new machine on january 1 2012 at a cost of 150000. the machine is expected to have an

A wheel has a radius of 435 m how far path length does a : a wheel has a radius of 4.35 m. how far path length does a point on the circumference travel if the wheel is rotated

Custom shoes co has gathered the following information : custom shoes co. has gathered the following information concerning one model of shoevariable manufacturing costs

Compute the inventory at december 31 2005 2006 amp 2007 : roberts company manufactures one product. on december 31 2004 roberts adopted the dollar-value lifo inventory method.

Would your answer change if ellen electric could use the : department a department b department c total sales 300000 280000 120000 700000 variable expensesnbsp 160000 175000

Te scaffold weighs 190 n and is 32 m long what is the : a window washer is standing on a scaffold supported by a vertical rope at each end. the scaffold weighs 190 n and is

Hi i need your help hi i study in university in greecei : hi i study in university in greece...i need your help until tomorrow for a mechanical draw.. ltbrgti must draw the

At what locations between the object and the screen should : a bright object and a viewing screen are separated by a distance of 79.4 cm. at what locations between the object and

A 254-cm-diameter faucet in the house can fill a : a water tower supplies water through the plumbing in a house. a 2.54-cm-diameter faucet in the house can fill a

User Account

All Pages