Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. x company currently makes a part and is considerin

X Company currently makes a part and is considering buying it next year from a...

80.2K

Verified Solution

Question

Accounting

X Company currently makes a part and is considering buying it next year from a company that has offered to supply it for $15.99 per unit. This year, total costs to produce 67,000 units were:

Direct materials $435,500
Direct labor 361,800
Variable overhead 234,500
Fixed overhead 274,700

If X Company buys the part, $46,699 of the fixed overhead is avoidable. The resources that will become idle if they choose to buy the part can be used to increase production of another product, resulting in additional total contribution margin of $10,000. The marketing manager estimates that demand next year will increase to 71,400 units. If X Company buys the part instead of making it, it will save

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

A 1200 mm deep by 750 mm wide post-tensioned simply supported beam is shown below. The...

Civil Engineering
Q

What happens to a halogenation reaction of a Alkene or Alkyne when the reaction is cold?

Chemistry
Q

Review The Case of Women Directors found on pages 91 - 96 in the textbook Boards,...

General Management
Q

How did the Black Death affect Medieval Europe?It prompted advances in medicine that extended the...

Biology
Q

46 The circuit shown in figure employs a constant current source of 8 A which...

Physics
Q

14 A current loop in a magnetic field NEET 2013 1 Can be in equilibrium...

Physics
Q

After graduating from college, Carlos receives two different job offers. Both pay a starting salary...

Algebra
Q

5. Bonds are issued at a premium by a capital projects fund. The...

Accounting
Q

From the reading, why is analysis of data so important to a company? None...

Accounting
Q

can you tell me how to enter this on a...

Accounting
Q

statement for the year ended December 31,2023? Multiple Choice $0 $1,200...

Accounting
Q

E11-11(Algo) Recording Dividends and Preparing a Statement of Retained Earnings [LO 11-2, LO 11-3] ...

Accounting