2024 Indifferent outsourcing cost per unit

Indifferent outsourcing cost per unit

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Web3 jan. 2024 · The average variable cost of producing two units is $25 if the marginal cost of producing the first unit of a good is $20 and the marginal cost of producing the second unit is $30. The average variable cost of producing 2 units is 30+20=50/2=25. WebPer unit production costs = variable costs of $25 + fixed overhead cost of $30 (or $30,000 ÷ 1,000 units) = $55 Net income = Sales of $75,000 (or 750 units x $100 per unit) - Cost of goods sold of $41,250 (or 750 units x $55 per unit) - Selling and administrative expenses of $22,500 (or (750 units x $10 per unit) + $15,000) = $11,250

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WebThis current cost per unit is based on the following? calculations: Direct material per unit $5.50 Direct labor per unit 7.25 Variable manufacturing overhead per unit 2.75 Fixed … WebInteliSystems Outsourcing Decision Make Buy switches switches Variable cost per unit $10.50 $8.50 Units needed 75,000 75,000 Total variable costs 787,500 637,500 Fixed … may that tar swe song

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Web16 jul. 2024 · Suppose, however, that the upfront cost to set up for in-house production is $6 million rather than $5 million, and the cost per unit for in-house production is expected to be $92 rather than $95. a. Suppose the outside supplier … Web(Variable costs + Fixed costs) / Units = Outsourcing cost per unit "x" (936,000 $ + 95,000 $) / 78,000 = 13.22 $ would be indifferent between outsourcing and making the … maythe

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WebTherefore, because the cost of outsourcing is proportional t t = $113.71/unit before Cisco would be indifferent. resent value of 20,167 – 3600 = $16,567 for actual production costs. Comparing pro tsourcing given a volume of 100,000 units. For the savings from production costs to122,324 units before Cisco would be indifferent. WebSloan Review states that the IT outsourcing spend increased by around $96.14 million whereas the spending on non-IT operations dropped by $121.4 million. South Dakota … may thazin phooWebBy outsourcing the manufacture of these A20 boxes, Helmer. Helmer can reduce its current fixed costs by $ 90 comma 000. $90,000. There is no alternative use for the factory space freed up through outsourcing, so it will just remain idle. What is the maximum Helmer. Helmer will pay per Model A20 box to outsource production of this box? may th be with you giphy

"WebFixed MOH 435,500 Cost if making switches Variable costs + Fixed costs 5 Total manufacturing cost for 67,000 units $ 1,273,000 etween outsourcing and making the Using the basic formula you determined al switches. " - Indifferent outsourcing cost per unit

Indifferent outsourcing cost per unit

Make the items do not outsource if the total costs of...

Webper Unit $25 $23 The breakeven volume for Process A is a. 50,000 units. b. 62,500 units. c. 30,000 units. d. 20,000 units. a. 50,000 units. 500,000/ (35-25)=50,000 units 53. A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. WebThe indifference point shows that the company needs 18,333 units to make the trade-off desirable. ADVERTISEMENTS: It may be noticed that break-even point for the two …

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WebUsing the basic formula you determined above, solve for the outsourcing cost at which Global Systems would be indifferent between outsourcing and making the switches … WebCost amount / Units produced = Cost per unit Direct materials $306,000 / 85,000 = $3.60 Direct labor $21,250 / 85,000 = $0.25 Variable MOH $51,000 / 85,000 = $0.60 Now that …

WebUnited States Mexico Total Sales P7,200,000 P3,600,000 P10,800, Variable costs (4,740,000) (2,088,000) (6,828,000) Contribution margin P2,460,000 P1,512,000 P … Web22 okt. 2024 · All of the following are service providing industries except - Brainly.com. 10/22/2024. Business. High School. answered.

WebFiberSystems would be indifferent between outsourcing and making the switches if theoutsourcing cost was $ 15.42 per switch. Therefore, Systems will only be willing to outsource if the outsourcing cost is less than $ 15.42per switch. correct, E8-31A (similar to) $15.42 less than $15.42 per switch Given answer: Web4 mrt. 2024 · The cost per unit formula involves the sum of fixed and variable costs, which is then divided by the total number of units manufactured during a period of time. Here is how to find the cost per unit: Cost per unit = (Total fixed costs + Total variable costs) / Total units produced

WebThe selling price is P22 per unit, variable costs are P14 per unit, fixed manufacturing overhead costs total P150,000 per month, and fixed selling costs total P30,000 per month. Employment-contract strikes in the companies that purchase the bulk of the E14 have caused Bulusan Company’s sales to temporarily drop to only 9,000 units per month.

WebAnswer a. As shown in Table 8.6, the cost of outsourcing has an NPV of -$19,510. The cost of in-house assembly, given the $6 million setup and $92/unit assem… View the full answer Related Book For Corporate Finance 4th edition Authors: Jonathan Berk, Peter DeMarzo ISBN: 978-0134083278 Students also viewed these Corporate Finance questions may the 10th star signWeb15 apr. 2024 · variable cost per unit = $0.80 if it outsources the production, then it can reduce fix costs by $103,200 currently the costs of producing the 430,000 boxes = … may the 11thWebWorldSystems incurred the following manufacturing costs when it produced 68,000 units last year: E (Click the icon to view the manufacturing costs.) WorldSystems does not yet … may the 1/4 be with you shirtWebThe selling price is P22 per unit, variable costs are P14 per unit, fixed manufacturing overhead costs total P150,000 per month, and fixed selling costs total P30,000 per month. Employment-contract strikes in the companies that purchase the bulk of the E14 have caused Bulusan Company’s sales to temporarily drop to only 9,000 units per month. may the 12thWeb12 sep. 2024 · Data Table 1 cause io, wh that is Direct materials Direct labor Variable MOH Fixed MOH Total manufacturing cost for 66,000 units $726,000 165,000 132,000 429,000 $ 1,452,000 ts d ab Print Done we on to Score: 0 of 3 pts 3 of 3 (2 complete) HW Score: 59.08%, 5.91 of 10 pts E8-28A (similar to Question Help CoolSystems manufactures an … may the 18thWebCost if making switches = Cost if outsourcing switches Variable costs + Fixed costs = Variable costs + Fixed costs Using the basic formula you determined above, solve for … may the 1/4 be with youWeb2 feb. 2024 · I believe outsourcing is a highly contested idea because people would rather have the products they use produced in their country. I think outsourcing is a good idea because production of a product might be cheaper in another country but sometimes that means a less of quality product. may the 13th