Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. tongkat ali sdn bhd makes 1000 litres of a chemica

Tongkat Ali Sdn Bhd makes 1000 litres of a chemical C for use in its...

70.2K

Verified Solution

Question

Accounting

image

Tongkat Ali Sdn Bhd makes 1000 litres of a chemical C for use in its Tongkat Ali vitamin supplements. Data concerning the unit production cost of the chemical is as follows: Direct Materials Direct Labour Variable Manufacturing Overhead Fixed Manufacturing Overhead Total Manufacturing Cost per unit *** @ $342 80 48 520 990 An outside supplier has offered to sell Tongkat Ali all of the chemicals it requires. If Tongkat Ali decides to discontinue making the chemicals, 20% of the above fixed manufacturing overhead could be avoided. Required: a. Assume Tongkat Ali has no alternative use for the facilities presently devoted production of the chemical. If the outside supplier offers to sell the chemical for $850 each, should Tongkat Ali accept the offer. Fully support your answer with appropriate calculations. b. Assume that Tongkat Ali could use the presently devoted to production of the chemical to expand production of another product that would yield an additional contribution margin of $50,000 annually. What is the maximum price Tongkat Ali should be willing to pay the outside supplier

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

Geometry
1.2K views

Given mn find the value of x 7x 5 9x 3

Biology
1.2K views

What are the characteristics of innate lymphocyte cells?

Basic Math
1.2K views

Please give a step by step solution: The ages of a group of 50 women are...

Accounting
1.2K views

Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak...

Biology
1.2K views

client weighs 135 10 zero Blank 1 Blank 1 Add your answer Question 6 O...

Physics
1.2K views

8 A swimmer can swim in still water at a speed of 15 km h...

Physics
1.2K views

e magnitude of electric force experienced by harged particle in an electric field depends Charge...

Geometry
1.2K views

Match each of the following sets of measurements with the number of unique triangles that...

Accounting
1.2K views

The following information was taken from the segmented income statement of Restin, Inc., and the...

Accounting
1.2K views

Question 4 (30 marks) a. Wellingborough Ltd is proposing to reduce the selling price of...

Accounting
1.2K views

The reading assignment this week focused on audit quality and discussed various culture, skills, and...

Accounting
1.2K views

Consider the matrices A = (-1/4-1) B= (14->) _ja. What is the behavior of...