When deciding whether to continue manufacturing a part or buying it from an outside supplier,...
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Accounting
When deciding whether to continue manufacturing a part or buying it from an outside supplier, a company determined that it could rent the space currently being used to manufacture the part for $20,000. When deciding whether to make or to buy the part: a. the $20,000 would be added to the cost of manufacturing the part. b. the $20,000 would be added to the cost of buying the part. the $20,000 would be ignored because it is not something that will be recorded in the company's financial records. d. the $20,000 would be ignored because it would only occur under one of the alternatives. Dinno Corp makes three products: XY and Z. The bottleneck (constraint) in the production process is time required on Dinno's cutting machine. The amount of time each product requires is shown below: Product X - 1.0 hours per unit Product Y-2.0 hours per unit Product 2 - 1,5 hours per unit To maximize profits under the constrained resource, the order in which Dinno should focus its manufacturing efforts is first Product Z, then Product Y, and finally Product X. If the demand for each of the products is 400 units, and Dinno has 750 hours of cutting machine time, how many units of each of the products should Dinno make to maximize profits? a. Product X Product Product z O units 75 units 400 units b. Product X Product Y Product z O units O units 400 units c. Product X Product Y Product z 400 units 400 units 400 units d. Product X Product Y Product Z 100 units 400 units 400 units


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