2. The Reston Company manufactures Part No. 498 for use in its production...
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2. The Reston Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 15,000 units of Part No. 498 is as follows: (Click to see the manufacturing cost per unit.) Read part 2's Begin by selecting the labels to calculate the effect on operating income and then enter in the supporting calculations. Requirement Data table For Reston to achieve an overall savings of $35,000, the amount of relevant costs that would have to be saved by using the released facilities in the manufacture of Part No. 575 would be which of the following: (a) $45,000, (b) $80,000, (c) $155,000 or (d) $90,000 ? Show your calculations. What other factors might Reston consider before outsourcing to Cushion? The Cushion Company has offered to sell 15,000 units of Part No. 498 to Reston for $59 per unit. Reston will make the decision to buy the part from Cushion if there is an overall savings of at least $35,000 for Reston. If Reston accepts Cushion's offer, $11 per unit of the fixed overhead allocated would be eliminated. Furthermore, Reston has determined that the released facilities could be used to save relevant costs in the manufacture of Part No. 575
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2. The Reston Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 15,000 units of Part No. 498 is as follows: (Click to see the manufacturing cost per unit.) Read part 2's Begin by selecting the labels to calculate the effect on operating income and then enter in the supporting calculations. Requirement Data table For Reston to achieve an overall savings of $35,000, the amount of relevant costs that would have to be saved by using the released facilities in the manufacture of Part No. 575 would be which of the following: (a) $45,000, (b) $80,000, (c) $155,000 or (d) $90,000 ? Show your calculations. What other factors might Reston consider before outsourcing to Cushion? The Cushion Company has offered to sell 15,000 units of Part No. 498 to Reston for $59 per unit. Reston will make the decision to buy the part from Cushion if there is an overall savings of at least $35,000 for Reston. If Reston accepts Cushion's offer, $11 per unit of the fixed overhead allocated would be eliminated. Furthermore, Reston has determined that the released facilities could be used to save relevant costs in the manufacture of Part No. 575 