con to view the manulaciuning coSt irements 1. Given the same cost structure, should WorldSystems make or buy the switch? Show your analysis. incremental analysis to show whether WorldSystems should make or buy the switch. (Enter a "o" for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) WorldSystems Incremental Analysis for Outsourcing Decision Make Вuy Data table Requirements Unit Unit Difference per unit A B 1. Given the same cost structure, should WorldSystems make Show your analysis. 2. Now, assume that WorldSystems can avoid $99.000 of fixe outsourcing production. In addition, because sales are incr WorldSystems needs 77,000 switches a year rather than 7 What should the company do now? 3. Given the last scenario, what is the most WorldSystems we to outsource the switches? aterials 0.00 1 Direct materials 648,000 por 0.00 overhead 2 Direct labor 108,000 0.00 e price from outsider 0.00 11.50 (11.50 3 Variable MOH 216.000 396,000 1,368,000|| 11.50 4 Fixed MOH able cost per unit 5 Total manufacturing cost for 72,000 units
con to view the manulaciuning coSt irements 1. Given the same cost structure, should WorldSystems make or buy the switch? Show your analysis. incremental analysis to show whether WorldSystems should make or buy the switch. (Enter a "o" for any zero amounts. Round amounts to the nearest cent. Use a minus sign or parentheses when the cost to buy exceeds the cost to make.) WorldSystems Incremental Analysis for Outsourcing Decision Make Вuy Data table Requirements Unit Unit Difference per unit A B 1. Given the same cost structure, should WorldSystems make Show your analysis. 2. Now, assume that WorldSystems can avoid $99.000 of fixe outsourcing production. In addition, because sales are incr WorldSystems needs 77,000 switches a year rather than 7 What should the company do now? 3. Given the last scenario, what is the most WorldSystems we to outsource the switches? aterials 0.00 1 Direct materials 648,000 por 0.00 overhead 2 Direct labor 108,000 0.00 e price from outsider 0.00 11.50 (11.50 3 Variable MOH 216.000 396,000 1,368,000|| 11.50 4 Fixed MOH able cost per unit 5 Total manufacturing cost for 72,000 units
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 3CMA: Aril Industries is a multiproduct company that currently manufactures 30,000 units of Part 730 each...
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