F2017 Data Total Costs $ 50,000 Direct Materials Direct Labor $2.00 Fixed Factor
ID: 2595217 • Letter: F
Question
F2017 Data Total Costs $ 50,000 Direct Materials Direct Labor $2.00 Fixed Factory Overhead Total Cost 7.40 30,000 Total Fixed Factory Overhead Anaheim received the following bids and asked you whether to accept those bids and rank each one from best to worst (with 1 being best and 4 being worst). In addition, Anaheim asked you to guide them whether to "make" or "buy" based on each b . Based on this bid, please select whether the Should Anaheim 'make' or 'buy' product #200 based on this bid? price of $7: Should Anaheim 'make' or 'buy' product #200 based on this bid? Anaheim profit (or lose) if it accepts this bid?Explanation / Answer
Variable cost per unit 7.4 Fixed Cost 75000 Existing Profit=15*25000-(7.4*25000+75000) 1,15,000 1) Burton Coprn Assume all the production so fixed overhead to be born by Anahelm Based on this bid following are unavoidable Rent 30,000 unavoidable Machine Lease 25,000 unavoidable Supervisior Salaries 20,000 unavoidable Total Fixed Cost 75,000 unavoidable So total Profit would be=15*25000-( 6*25000+75000) 1,50,000 Buy or manufacture Buy Anaheim, will make additional profit compare to existing 35,000 2) Cal Inc. offerred Lease rent =15000 Sales price to Anaheim=7 Profit would be =15*25000-(7*25000+75000-15000) 1,40,000 Buy or manufacture Buy Anaheim, will make additional profit compare to existing 25,000 3) Dekel Company offered Total profit will be 200000-75000 1,25,000 Yes Anaheim should accept the offer as erning more as compre to existing Anaheim, will make additional profit compare to existing 10,000 Ranking Anaheim Produces the product 4 Burton Produces the product 1 Cal Produces the product 2 Dakel Produces the product 3
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