A company asked one of their analysis team to analyze and create models that help decide whether they should manufacture a particular product or outsource its production. The different components are given below
Fixed Cost, FC = $25,000
Material Cost per Unit, MC = $2.15
Labor Cost per Unit, LC = $2.00
Outsourcing Cost per Unit, O = $4.50
?
Build a spreadsheet model and then use a two-way data table to show how the savings due to outsourcing changes as a function of different production volume and different bids on per-unit cost for outsourcing. Vary the production volume from 0 to 100,000 in increments of 10,000. The six bids are $3.11, $3.49, $4.50, $4.98, $5.12, and $5.45.
a.
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CT Computer Corporation, an accrual-basis taxpayer, sells service contracts on the computers it sells. At the beginning of January of this year, CT Corporation sold contracts with service to begin immediately:One for three months$200One for 20 months 800One for 48 months 4,000The amount of income CT Corporation must report for this year is
A. $200. B. $1,680. C. $1,000. D. $5,000.
Form utility is created by converting raw materials, people, finances, and information into finished products.
Answer the following statement true (T) or false (F)
Form utility is created by making a product available at a location where customers wish to purchase it.
Answer the following statement true (T) or false (F)
On July 31, 2018, a company purchased a two-year insurance policy for $27,000, paying cash and debiting Prepaid Insurance for the entire two-year premium amount. The adjusting entry on December 31, 2018 includes a:
A. debit to Prepaid Insurance $6,750. B. credit to Prepaid Insurance $5,625. C. credit to Insurance Expense $5,625. D. debit to Insurance expense $6,750.