A company produces 10,000 units of a component internally at…
A company produces 10,000 units of a component internally at a variable cost of $9 per unit and fixed costs of $4 per unit. Forty percent of the fixed costs are avoidable if the component is purchased. A supplier offers to sell the component for $12 per unit. Based on relevant costs, which alternative is better and by how much per unit?
Read DetailsA service company uses time-and-material pricing. The labour…
A service company uses time-and-material pricing. The labour rate is $60 per hour and includes profit. The material loading charge is 30 percent of direct materials. A job requires 6 labour hours and $500 of direct materials. What is the total price charged to the customer?
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