Tamarisk Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department...

80.2K

Verified Solution

Question

Accounting

image
image
Tamarisk Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides the following cost information for manufacturing 11.800 units of subcomponent JXY per month $41.400 28,900 Direct materials costs Direct labour costs Variable overhead Fixed overhead 15,800 12.700 Fixed overhead includes $5,300 supervisor's salary International Firm agrees to supply Tamarisk with 11,800 units per month'for a total cost of $145,700. If subcomponent JXY IS outsourced, Tamarisk will be able to increase the production and sales of its final product by 1.060 units per month the product is sold for $120 per unit and its average variable costs per unit are $75. The supervisor's salary will be eliminated if subcomponent JXY is outsourced. (a) Prepare an incremental analysis for subcomponent JXY. (If an amount reduces the incremental costs then enter with a negative sign preceding the number eg. -15,000 or parenthesis, e.8. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Increm Cos Savit Make BV Prepare an incremental analysis for subcomponent JXY. (If an amount reduces the incremental costs then enter with a negative sign preceding the number e.g.-15.000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Incremental Costs (Savings) Make Buy . $ $ $ $ $

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