6. Bank Corp manufactures a part for its production cycle with anmual costs per unit...
90.2K
Verified Solution
Link Copied!
Question
Accounting
6. Bank Corp manufactures a part for its production cycle with anmual costs per unit for 20,000 units of this part are as follows: The company has been approached by a supplier who will sell 20,000 units of the same part for $940,000. All the fixed indirect production costs are unavoidable if Bank Corp ceases production of the part. Required: A) Assuming there is no alternative use for the facilities, should Bank Corp buy or make the part? (5 p B) Assume the facilities can be rented out for $100,000 per year. Should Bank Corp buy the part? If so, how much money will be saved? (5 pts)
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.