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)

For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar.spooner oil company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. no mention of the change was included in the financial statements. the change had a material effect on spooner's financial statements.cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery.rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles at $100 each. the customer paid davis the entire amount of $100,000 on march 15. however, davis did not record any revenue until april 17, the date the bicycles were delivered to the customer.gigantic corporation purchased two small calculators at a cost of $32.00. the cost of the calculators was expensed even though they had a three-year estimated useful life.esquire company provides financial statements to external users every three years.