Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. han products manufactures 47,500 units of part s6

Han Products manufactures 47,500 units of part S6 each year for use on its production...

60.1K

Verified Solution

Question

Accounting

image
image
Han Products manufactures 47,500 units of part S6 each year for use on its production line. At this level of activity, the cost per unit for part 5.6 is as follows: An outside supplier has offered to sell 41,500 units of part $6 each year to Han Products for $27,25 per part. If Han Products accepts this offer, the facilities now being used to manufacture part $.6 could be rented to another company at an annual rental of $98.000. However. Han Products has determined that 30% of the fixed overhead being applied to part 5.6 will be avoided if part S6 is purchased from the outside supplier, Required: 1. What is the net dollar advantage or disadvantage of accepting the outside suppllei's offer? (Round "Total costs" and final answer to the nearest whole dollor omount.) 2. What is the annuar terital value at which the company will be indifferent between the two options? (Round "Total costs" and final answer to the nearest whole dollar amount.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Using Arduino , TCNT0 with PWM How do you pick a prescaler and OCR0A to get...

Electrical Engineering
Q

1. A premixed stoichiometric methane-air flame has a laminar flame speed of 0.33 m/s and a...

Mechanical Engineering
Q

Which one between unemployment and inflation do you think is more inportant to stabilize if the...

Economics
Q

Adjust your analysis to the information in the table without modifying the baseline information. Analyze the...

General Management
Q

Find the eigenvalues and eigenvectors of the given matrix. ((0.6 0.1 0.2),(0.4 0.1 0.4), (0 0.8...

Advance Math
Q

In which structure does fertilization take place oviduct cervix ovary uterus

Biology
Q

Tathon the skeletal muscle cells in your st energy to continually contract and power your...

Biology
Q

A particle performs SHM along a straight line In the first second starting from rest...

Physics
Q

A block of mass m is connected with three spring of spring constant 5K 2K...

Physics
Q

14 In the circuit shown the switch S closed for a long time The switch...

Physics
Q

(6 1) SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries...

Accounting
Q

6) Why is the difference between primary issues and secondary issues of corporate stock not...

Finance