C Clark Company, a reputable skateboard company, is now manufacturing the heavy duty bearing that...
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Accounting
C Clark Company, a reputable skateboard company, is now manufacturing the heavy duty bearing that is utilized in its most popular line of skateboards. The business' accounting section reports the following expenses for manufacturing units of the bearings internally every year.
Direct Materials
Direct Labor
Supervisor Salary
Variable Overhead
Allocated general overhead
Depreciation of special equipment
Totals
An offshore supplier has offered to sell bearings to the skateboard company for only $ per bearing.
If the company purchases the bearings from the external "offshore" company, they can rent out that space and genereate $ in rent
equired
Should the company "offshore" the part or produce the bearings in house?
Be sure to explain why.
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