identify the managerial accounting topic? and describe it? Complech, Ine., manufactures...

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Accounting

identify the managerial accounting topic? and describe it?
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Complech, Ine., manufactures printers for use with home computing systems, The firm currently manufactures both the electronic components for its printers and the plastic cases in which the devices are enclosed. Jim Cassanitti, the production manager, recently received a proposal from Universal Plastics Corporation to manufacture the cases for CompTech's printers. If the cases are purchased outside, Comprech will be able to close down its Printer Case Department. To help decide whether to aceept the bid from Universal Plastics Corporation, Cassanitti asked Complech's controller to prepare an analysis of the costs that would be saved if the Printer Case Department were closed, Included in the controller's list of anntal cost savings were the following items: Bulling rental (The Printer Cose Department occupies one-sixth of the factory building. which Complech rents for $177,000 per year) $29,500 Salary of the Printer Case Department supervisor $50,000 In a lunchtime conversation with the controller, Cassanitti learned that Complech was currently renting space in a warehouse for $39,000. The space is used to store completed printers. If the Printer Case Department were discontinued, the entire storage operation could be moved into the factory building and occupy the space vacated by the closed department. Cassaniti also learned that the supervisor of the Printer Case Department would be retained by Complech even if the department werv closed. The supervisor would be assigned the job of managing the assembly department, whose supervisor recently gave notice of his retirement. All of Comp Fech's department supervisors carn the same salary

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