46 please 46. Sardi Inc. is considering whether to continue to...
70.2K
Verified Solution
Link Copied!
Question
Accounting
46 please
46. Sardi Inc. is considering whether to continue to make a compo ke a component or to buy it from an outside supplier. The company uses 17.000 oxhe components each year. The unit product cost of the compon me component according to the company's cost accounting system is given as follows: Direct materials $ 8.20 Direct labor 8.301 on 300900 Variable manufacturing overhead 1.20 4.30 Fixed manufacturing overhead +64400 300 tslito at 11900 $ 22.00 eshad, 70% is avaidahls the component were bago the machine that is the company's current constant, the est that requires 4 minutes on this machine and that has a Unit product cost Assume that direct labor is a variable cost of the fixed manufacturing the outside suppligr. In addition, making the component uses 2 minutes component were bought time would be freed up for use on another produk contribution margin of $7.00 per unit. When deciding whether to make or buy the componen the component? (Round your intermediate calculations to 2 decimal place A) $24.21 per unit B) $25.50 per unit C) $20.71 per unit D) $22.00 per unit Take or buy the component, what cost of making the component should be compared to the price of buying Make
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: Zin AI - Your personal assistant for all your inquiries!
