Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please show your work outsourcing (make-or-buy)

PLEASE SHOW YOUR WORK Outsourcing (Make-or-Buy) Decision Assume a division of Hewlett-Packard currently...

70.2K

Verified Solution

Question

Accounting

PLEASE SHOW YOUR WORK

Outsourcing (Make-or-Buy) Decision Assume a division of Hewlett-Packard currently makes 12,000 circuit boards per year used in producing diagnostic electronic instruments at a cost of $34 per board, consisting of variable costs per unit of $24 and fixed costs per unit of $10. Further assume Sanmina Corporation offers to sell Hewlett-Packard the 12,000 circuit boards for $34 each. If Hewlett-Packard accepts this offer, the facilities currently used to make the boards could be rented to one of Hewlett-Packard's suppliers for $46,000 per year. In addition, $6 per unit of the fixed overhead applied to the circuit boards would be totally eliminated.

Should HP outsource this component from Sanmina Corporation?

Calculate the net advantage (disadvantage) to HP of outsourcing the component from Samina Corporation.

Use a negative sign with your answer to indicate a net disadvantage, if appropriate.

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Electrical Engineering
1.2K views

480 V, 200 kVA, 08 PF lagging, 60 Hz two pole Y connected synchronous generator has...

Civil Engineering
1.2K views

USING UNITED STATES IBC CHAPTER 7: 1. Roofing inter-layment shall have a minimum width of ____ inches. A. 12                           B. 18                           C. 34                           D....

General Management
1.2K views

Quantitative Analysis for Managers Why is it important to know the internal rate of return and the...

Basic Math
1.2K views

Calculate a t-test for the following scenario. An engineer is designing a stationary parts bin at...

Accounting
1.2K views

Terms of a lease agreement and related facts were: The lease asset had a retail cash...

Physics
1.2K views

4 A small fish is situated at a depth of 6 ft in a tank...

Geometry
1.2K views

Bryant is deciding what to wear to school today There are 10 tops to choose...

Basic Math
1.2K views

Pick the correct answer based on the information presented in this image 500 Black lines...

Algebra
1.2K views

4 x 1 x x X

Accounting
1.2K views

Klein Company distributes a high-quality bird feeder that sells for $30 per unit. Variable...

Accounting
1.2K views

1. Following is an inventory acquisition schedule for ABC CO. for 2020: Units Unit Cost...

Accounting
1.2K views

QUESTION 14 The correct label for Shape 1 in the flowchart below is Inventory Control...