Beaumont Company manufactures its own mobile phone parts and…
Beaumont Company manufactures its own mobile phone parts and operates at full capacity. The direct materials and direct labour costs per unit to make the parts are ${a} and ${b}, respectively. The variable manufacturing overhead is charged to production at the rate of {c}% of direct labour costs. Beaumont produces {e},000 mobile phone cases per year. A supplier offers to make mobile phone parts at a price of ${d} per unit. If Beaumont Company accepts the supplier’s offer, all variable manufacturing costs will be eliminated, but the $35,000 of fixed manufacturing overhead currently being charged to the parts will have to be absorbed by other products. Calculate the total annual cost difference between the decisions to make and buy. Enter your answer to the space provided. (If an amount increases in annual cost then enter the number, e.g. 6000. If an amount reduces the annual cost then enter with a negative sign preceding the number, e.g. -15000.)
Read DetailsElk Company plans to sell its newly developed keyboard at ${…
Elk Company plans to sell its newly developed keyboard at ${a} and hope to earn a return of {b}% of the selling price. However, the prototypes of the keyboard are costing ${c}. Management of Elk company believes that the cost can decrease by using alternative material. Calculate the target cost for the Elk Company Enter your answer in the space provided. Round your answer to the nearest 2 decimal places.
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