Mcmurphy corporation produces a part that is used in the manufacture of one of its products. the costs associated with the production of 12,000 units of this part are as follows: direct materials $86,000 direct labor 126,000 variable factory overhead 58,000 fixed factory overhead 138,000 total costs $408,000 of the fixed factory overhead costs, $55,000 is avoidable. conners company has offered to sell 12,000 units of the same part to mcmurphy corporation for $41 per unit. assuming there is no other use for the facilities, mcmurphy should a) make the part, as this would save $16 per unit b) buy the part, as this would save $16 per unit c) buy the part, as this would save the company $192,000 d) make the part, as this would save $14 per unit if mcmurphy had the opportunity to use the facility to make a different product that would have a total contribution margin of $168,000, mcmurphy should:

C) buy the part, as this would save the company $192,000

Explanation:

Assuming there is no other use for the facilities, McMurphy should _buy the part, as this would save the company $192,000.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

in terms of experimental research, mcdonald’s charging different prices in the two cities relates to