Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question is in two images , show all your workings

Question is in two images , Show all your workings Josh Chemic Company Limited...

70.2K

Verified Solution

Question

Accounting

image

image

Question is in two images , Show all your workings

Josh Chemic Company Limited (Josh Chemic) manufactures a wide variety of detergents for use in hospitals. The operations manager of Josh Chemic has recently been approached by a new manufacturer based in a newly industrialized country who has offered to produce three of the detergents at their factory. The following cost and price information has been provided. Detergent Aromatic Enzyme Presoak Production (units) 20,000 40,000 80,000 GHO GHC GHO Direct material cost, per unit 6.80 7.00 6.40 Direct labor cost, per unit 7.60 7.80 6.80 Direct expense, per unit 6.40 6.60 6.20 Fixed cost per unit 6.80 7.00 6.40 Selling price each 25.00 30.00 12.00 Imported price 16.75 25.20 12.00 All fixed costs are directly attributable fixed costs Required 1. Calculate the profits Josh Chemic will make by producing each of the detergents in-house. 2. Calculate the profits Josh Chemic will make by purchasing the detergents from the overseas producer. 3. What saving (increased cost) per unit would be made/incurred) if the detergents were purchased from the overseas producer? 4 Advice Josh Chemic whether the detergents should be produced in-house or outsourced to the overseas producer

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

Q

Consider a joint PMF for the results of a study that compared the number of micro-strokes...

Basic Math
Q

Sunburn Sunscreen has a zero coupon bond issue outstanding with a $21,000 face value that matures...

Finance
Q

Choose a recursive definition of the following sequence an n 1 2 3 An 5n...

Basic Math
Q

In a survey of 1018 adults a polling agency asked When you retire do you...

Statistics
Q

Psychologists often measure how long it takes mice to find their way through a maze...

Statistics
Q

Identify the function that best models the given data Trees 6 10 14 18 22...

Algebra
Q

A company uses the indirect method to determine its cash flows from operating activities. Use...

Accounting
Q

Discuss in detail what an outlier is and explain how it can be a...

Accounting
Q

4. Calculate the contribution margin ratio for each policy. Rank the Insurance Type field from...

Accounting
Q

2. The DL budget, S&A budget, unit cost and budgeted income statement (5pts): Petrini Corporation...

Accounting
Q

Case 1 Sticker Giant Embraces Change Entrepreneurs typically are not afraid to take risks or...

Finance
Q

Chuck has $2,500 invested in a bank that pays 4% semiannually. How long will it...

Finance