Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 10.51 outsource computations, qualitative factors

10.51 Outsource computations, qualitative factors Diamond Light Company incurred the following costs to produce 50...

70.2K

Verified Solution

Question

Accounting

image

10.51 Outsource computations, qualitative factors Diamond Light Company incurred the following costs to produce 50 000 light switches for floor lamps in 2017. Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs $100000 150 000 80 000 120000 $450000 The Ignition Company has offered to supply the switches for $8 per unit. An analysis of the overhead costs has identified that if the switches are outsourced, Diamond Light Company would eliminate $20 000 of fixed costs, and could use the released production capacity to generate additional income of S56 000 from producing a different product. Required a. From a financial perspective, should the light switches be outsourced? Show calculations. b. What qualitative factors need to be considered in the outsourcing decision

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

Biology
1.2K views

A 78-year-old female was arrived tired to the emergency room with the following symptoms: nausea, vomiting,...

Electrical Engineering
1.2K views

Problem 3: A single phase 60 Hz two-winding power transformer is rated at 2400V/240V and 100...

General Management
1.2K views

Explain the shift from mass production to mass customisation and relate to it to the Amazon....

Physics
1.2K views

A wind powered generator converts wind energy into electrical energy Assume that the generator converts...

Statistics
1.2K views

John Roberto Marco and Clarice work for a publishing company The company wants to send...

Accounting
1.2K views

7. The company discounted its notes receivables for $5,000 and collected $4,300. This...

Accounting
1.2K views

unland, Inc. manufactures ergonomically designed computer furniture. Sunland uses a job order costing system. On...

Accounting
1.2K views

Chapter 14 Problems Saved Help Save & Exit Submit Check my work For the just...

Accounting
1.2K views

Andrea would like to organize SHO as either an LLC (taxed as a sole proprietorship)...

Accounting
1.2K views

what is the total Allocated Overhead DAY You company produces outdoor products for consumers...

Accounting
1.2K views

Answering the following question using this financial statement: https://www.sec.gov/Archives/edgar/data/80424/000008042415000070/fy141510-kreport.htm Review the consolidated balance sheets and...

Finance
1.2K views

You are a real estate agent thinking of placing a sign advertising your service stalocal...