Preferably in second picture format. Thank you. Make or BuyMakeBuyTotalPer UnitTotalPer UnitPurchase CostDirect MaterialsDirect LaborVariable OverheadFixed OverheadOTotal # 6.The Big Cookie Company reports the following average information per cookie package for 2018.This information is only for packaging, not the cookies themselves:Total Cost for100,000Cost per packagePackages$75,000Direct Materials$0.75Direct Labor$22,000$0.22$52,000$70,000Variable Factory Overhead$0.52Fixed Factory Overhead$0.70Total Costs$219,000$2.19Another manufacturer offers to sell The Big Cookie Company the packages for $1.60 a package.This would leave idle facilities for Big Cookie, but the accountants estimate $10,000 would be saved in costs related to the packaging machinery.Should The Big Cookie Company allow its packages to be made by another manufacturer?Thoroughly explain your answer.

working notes : Purchase cost(Buy per Total)=(100,000 units x $1.60 per unit)=160,000 Fixed overhead…

# 6. The Big Cookie Company reports the following average information per cookie package for 2018. This information is only for packaging, not the cookies themselves: Total Cost for 100,000 Cost per package Packages $75,000 $22,000 Direct Materials $0.75 Direct Labor $0.22 Variable Factory Overhead $52,000 $0.52 $0.70 $2.19 Fixed Factory Overhead $70,000 Total Costs $219,000 other manufacturer offers to sell The Big Cookie Company the packages for $1.60 a package. nis would leave idle facilities for Big Cookie, but the accountants estimate $10,000 would be saved in costs related to the packagin ould The Big Cookie Company allow its packages to be made by another manufacturer? noroughly explain your answer.

# 6. The Big Cookie Company reports the following average information per cookie package for 2018. This information is only for packaging, not the cookies themselves: Total Cost for 100,000 Cost per package Packages $75,000 $22,000 Direct Materials $0.75 Direct Labor $0.22 Variable Factory Overhead $52,000 $0.52 $0.70 $2.19 Fixed Factory Overhead $70,000 Total Costs $219,000 other manufacturer offers to sell The Big Cookie Company the packages for $1.60 a package. nis would leave idle facilities for Big Cookie, but the accountants estimate $10,000 would be saved in costs related to the packagin ould The Big Cookie Company allow its packages to be made by another manufacturer? noroughly explain your answer.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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