80.2K

Verified Solution

Link Copied!

Current Attempt in Progress Sheridan Music produces 60000 blank CDs on which to record music. The CDs have the following costs: $10200 15500 Direct Materials Direct Labour Variable Overhead Fixed Overhead 2600 7200 None of Sheridan's fixed overhead costs can be reduced, but another product could be made that would treate the operating Income by $1400 if the Coswore acquired externally. If cost minimization is the major consideration and the company would prefer to buy the CDs, what is the maximum external price that Sheridan wette be willing to accept to acquire the 60.000 units externally! 539900 $32700 $31100 535500 Current Attempt in Progress The cost to produce Part A was $8 per unit in 2021. During 2022, it has increased to $12 per unit. In 2022 Oriole Company has offered to supply Part A for $9 per unit. For the make-or-buy decision incremental costs are 54 per unit net relevant costs are $4 per unit differential costs are per unit. incremental revenues are $1 per unit. Current Attempt in Progress Marigold Company uses 9200 units of Part A in producing its products. A supplier offers to make Part A for $7. Marigold Company has relevant costs of $8 a unit to manufacture Part A. If there is excess capacity, the relevant cost of buying Part A from the supplier is 573600 50 59200 $64400

Answer & Explanation Solved by verified expert

See Answer