Manson Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making a subassembly part for its finished product. A supplier offers to make 17,900 of the part at $5.90 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part.

Yes Co. has the option to either further process product Y to produce Product Z. The selling price of product Y is $30 per unit and it costs $28 to produce each unit of product Y. Product Z would be sold for $55 and would require an additional $31 cost for production. What is the differential cost to produce product Z? a. $3 per unit b. $28 per unit c. $31 per unit d. $25 per unit

Charleston Affair currently makes the King Component, incurring variable costs of $18 per unit and fixed costs of $4 per unit. The company has the option to purchase the component for $20 per unit. Prepare a differential analysis to determine if the company should make (Alternative 1) or buy (Alternative 2) the King Component. Assume that the fixed costs will be incurred in each situation up to 40,000 units.    Determine at what want point of sales does it make sense to produce rather than buy)

Value Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 32,000 parts is $90,000​, which includes fixed costs of $30,000 and variable costs of $60,000. The company can buy this part from an external supplier for $5 per unit and avoid 10​% of the fixed costs. If Value Electronics decides to outsource the production of the​ part, how will it impact its operating​ income? A. Operating income increases by $97,000.   B. Operating income decreases by $100,000.   C. Operating income decreases by $97,000.   D. Operating income increases by $100,000.

1. McIntosh Enterprises produces giant stuffed bears. Each bear consists of $12 of variable costs, $9 of fixed costs, and sells for $45. A wholesaler offers to buy 8,000 units at $14 each of which McIntosh has the capacity to produce. McIntosh will incur extra shipping costs of $1.25 per bear. Instructions Determine the incremental income or loss that McIntosh Enterprises would realize by accepting the special order.

Assume that HASF  furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $30 per set. Modern Furniture’s chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture’s were to manufacture the cushions, the materials cost would be $16 and the labor cost would be $10 per set and that it would have to purchase cutting and sewing equipment, which would add $25,000 to annual fixed costs. Required   Computation for 10,000 units  What amount should have been inccrued if company produce 10,000 units  What amount should have been inccrued if company purhcase 10,000 units from outside   What amount company save if company make 10,000 cushions

Marikina Shoe Manufacturing Company will produce a special-style shoe if the order size is large enough to provide a reasonable profit. For each special -style order, the company incurs a fixed cost of P20,000 for the production set up. The variable cost is P600 per pair, and each pair sells for P800.   a. Let x indicate the number of pairs of shoes produced. Develop a mathematical model for total cost of producing x paiars of shoes. b. Let P indicate the total profit. Develop a mathematical model for the total profit realized from an order for x pairs of shoes. c. How large must the order be for Marikina to breakeven?

Answer the following questions. Required 1. Deibler Computers makes 5,600 units of a circuit board, CB76, at a cost of $210 each. Variable cost per unit is $150, and fixed cost per unit is $60. HT Electronics offers to supply 5,600 units of CB76 for $185. If Deibler buys from HT, it will be able to save $25 per unit of fixed costs but continue to incur the remaining $35 per unit. Should Deibler accept HT's offer? Explain. 2. QT Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: (Click the icon to view the information.) QT Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Should QT replace the old machine? Explain. A Requirement 1. Deibler Computers makes 5,600 units of a circuit board, CB76, at a cost of $210 each. Variable cost per unit is $150, and fixed cost per unit is $60. HT Electronics offers to supply 5,600 units of CB76 for $185. If Deibler buys from HT, it will be able to…

Winter Sports manufactures snowboards. Its cost of making 1,700 bindings is as follows: (Click the icon to view the costs.) Suppose Livingston will sell bindings to Winter Sports for $14 each. Winter Sports would pay $1 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.40 per binding. Read the requirements. Requirement 1. Winter Sports' accountants predict that purchasing the bindings from Livingston will enable the company to avoid $2,200 of fixed overhead. Prepare an analysis to show whether Winter Sports should make or buy the bindings. (Only enter the net relevant costs. For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Make Bindings Outsource Bindings Difference (Make-Outsource) - X Binding costs Data table Variable costs: $ 49 Direct materials Direct labor Variable overhead Fixed costs Durahan minn fram manten ? 7 Q A 2 W S 43…

Sprite company must decide on a make or buy decision.  A supplier has offered to make the product at the same quality.  Fixed marketing costs would be unaffected but variable marketing costs would be reduced by 30%.  What is the maximum amount per unit that Sprite can pay the supplier without decreasing its operating income? P6.75 P9.75 P5.75 P5.05