Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. pearl systems produces and sells speakers and cd p

Pearl Systems produces and sells speakers and CD players. The following information has been collected...

90.2K

Verified Solution

Question

Accounting

Pearl Systems produces and sells speakers and CD players. The following information has been collected about the costs related to the systems:

Selling price per unit $ 72
Production costs per unit
Direct materials $ 23
Direct labour 18
Variable overhead 2
Total fixed overhead $ 303,920

Pearl normally produces 23,200 of these systems per year.

The managers have recently received an offer from a Mexican company to produce these systems for $ 51 each. The managers estimate that $ 245,920 of Pearls fixed costs could be eliminated if they accept the offer.

Perform a quantitative analysis for the decision, and present your results in a schedule. (Round entries for this part to 2 decimal places, e.g. 12.55.)

Make Buy
Purchase price $ $
Variable costs:
Direct materials
Direct labour
Variable overhead
Avoidable fixed cost
Total $ $

Pearl should buy/ make.

Under the general decision rule for this type of decision, what production level is required for Pearls managers to be indifferent?

Production level: systems

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

According to Nielsen Media Research, the average number of hours of TV viewing per household per...

Statistics
Q

what are four things they talked about in Edith Widder Video : Glowing life in an...

Biology
Q

What are creative ways that you can retain your first employee and ensure you are meeting...

General Management
Q

Select all of the following that are characteristics of crustaceans.maxillary glands.antennal glands.calcium carbonate deposited in...

Biology
Q

Why did the Guerreros set up a table at the block party?A. They wanted to...

Biology
Q

On a picture showing a loose connective tissue the empty space between the cells and...

Biology
Q

obability of selecting a yellow bird or a 4 is an integer or a simplified...

Basic Math
Q

List all the two element subsets of the following set 4 5 6 7 Choose...

Basic Math
Q

A company has net income of $190,000, a profit margin of 9.20 percent,...

Accounting
Q

Condensed financial data of Novak Corp. follow. Novak Corp. Comparative Balance Sheets December...

Accounting
Q

As CEO of your company, you

Accounting
Q

16. The Harris Poll reported in this chapter stated that ______ of adults practice what...

Accounting