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Author Question: Spahr Company produces a part that is used in the manufacture of one of its products. The unit ... (Read 97 times)

pane00

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on: Jan 4, 2020
Spahr Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 5,000 units, are as follows:

Direct materials $2.00
Direct labour $4.00
Variable manufacturing overhead $3.00
Fixed manufacturing overhead $1.00
Total cost $10.00
The fixed overhead costs are unavoidable.​

Erickson Company has offered to sell 5,000 units of the same part to Spahr Company for $11 per unit.  Assuming the company has no other use for its facilities, what should Spahr Company do?
◦ Buy from Erickson and save $1 per unit.
◦ Make the part and save $5 per unit.
◦ Make the part and save $2 per unit.
◦ Make the part and save $1 per unit.
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Marked as best answer by pane00 on Jan 4, 2020

adammoses97

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Reply #1 on: Jan 4, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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pane00

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Reply 2 on: Jan 4, 2020
Thanks for the timely response, appreciate it

atrochim

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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