subject
Business, 11.09.2019 01:30 mallorywoods8

You are consulting a company that manufactures cell phones. currently, the company manufactures all portions of the cell phone internally for $22 per unit ($6.85 of direct materials, $11.74 of direct labor, and $3.41 of fixed manufacturing overhead). however, the company is considered outsourcing one part of the phone, its circuit board, to an outside supplier. the supplier quoted a price of $4.50 per circuit board. if the company accepts the supplier's offer, it is estimated that the total direct materials costs would be reduced by 20% and total direct labor costs would be reduced by 15%.
a)if the company decides to outsource the circuit board, the total cost of the cell phone is $ per unit. (round to the nearest calculations)
b)should the company you are consulting accept the outside supplier's offer? why or why not?
c)the maximum price per circuit board that the company should be willing to pay the outside supplier is $ (round to the nearest calculations)

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 21.06.2019 13:30, Amrinderkhattra
How is a proportional tax different from a progressive tax? a. a proportional tax decreases with income level, but a progressive tax increases with income level. b. a proportional tax increases with income level, but a progressive tax decreases with income level. c. a proportional tax increases with income level, but a progressive tax is the same percentage for all. d. a proportional tax is the same percentage for all, but a progressive tax increases with income level.
Answers: 2
image
Business, 21.06.2019 22:40, eamber646
Lincoln company has an accounting policy for internal reporting purposes whereby the costs of any research and development projects that are over 70 percent likely to succeed are capitalized and then depreciated over a five-year period with a full year of depreciation in the year of capitalization. in the current year, $400,000 was spent on project one, and it was 55 percent likely to succeed, $600,000 was spent on project two, and it was 65 percent likely to succeed, and $900,000 was spent on project three, and it was 75 percent likely to succeed. in converting the internal financial statements to external financial statements, by how much will net income for the current year have to be reduced? a. $180,000b. $380,000c. $720,000d. $900,000
Answers: 3
image
Business, 22.06.2019 01:30, stmy1969
Someone knows the answer i need in the exam
Answers: 2
image
Business, 22.06.2019 13:40, vanessam16
Salge inc. bases its manufacturing overhead budget on budgeted direct labor-hours. the variable overhead rate is $8.10 per direct labor-hour. the company's budgeted fixed manufacturing overhead is $74,730 per month, which includes depreciation of $20,670. all other fixed manufacturing overhead costs represent current cash flows. the direct labor budget indicates that 5,300 direct labor-hours will be required in september. the company recomputes its predetermined overhead rate every month. the predetermined overhead rate for september should be:
Answers: 3
You know the right answer?
You are consulting a company that manufactures cell phones. currently, the company manufactures all...

Questions in other subjects: