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  1. business
  2. accounting
  3. a) the total cost to make part q108 is $_____ b)

a) the total cost to make Part Q108 is $_____ b) the total...

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Accounting

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a) the total cost to make Part Q108 is $_____
b) the total cost to BUY Part Q108 is $_____
c) The most that loro would be willing to pay an outsider supplier for Part Q108 would be $___
d) if Loro buys Part Q108, their income will (increase or decrease) by $_____
o Exercise 13-28 Make or Buy Loro Company is currently manufacturing part Q108, producing 35,000 units annually. The part is used in the production of several products made by Loro. The cost per unit for Q108 is as follows: Direct materials $ 6.00 Direct labour 2.00 Variable overhead 1.50 Fixed overhead 3.50 Total $13.00 of the total fixed overhead assigned to Q108, $77,000 is direct fixed overhead (the lease of pro- duction machinery and salary of a production line supervisor-neither of which will be needed if the line is dropped). The remaining fixed overhead is common fixed overhead. An outside supplier has offered to sell the part to Loro for $11. There is no alternative use for the facilities currently used to produce the part

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