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Business, 25.10.2019 06:43 jesse8581

Han products manufactures 25,000 units of part s-6 each year for use on its production line. at this level of activity, the cost per unit for part s-6 is: direct materials $ 5.20 direct labor 8.00 variable manufacturing overhead 3.70 fixed manufacturing overhead 12.00 total cost per part $ 28.90 an outside supplier has offered to sell 25,000 units of part s-6 each year to han products for $46.00 per part. if han products accepts this offer, the facilities now being used to manufacture part s-6 could be rented to another company at an annual rental of $632,500. however, han products has determined that two-thirds of the fixed manufacturing overhead being applied to part s-6 would continue even if part s-6 were purchased from the outside supplier. required: a. calculate the per unit and total relevant cost for buying and making the product? (round your "per unit" answers to 2 decimal places.)per unit differential costs makeper unit differential costs buys 25,000 units makes 25,000 units buycost of purchasing cost of making: direct material: direct labor: variable overhead: fixed overhead: total cost b. how much will profits increase or decrease if the outside supplier

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Han products manufactures 25,000 units of part s-6 each year for use on its production line. at this...
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