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Author Question: Victory Electronics makes a part used in the manufacture of desktop computers. Management is ... (Read 50 times)

jayhills49

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on: Jan 4, 2020
Victory Electronics makes a part used in the manufacture of desktop computers.  Management is considering whether to continue manufacturing the part, or to buy the part from an outside source at a cost of $27.00 per part. Victory Electronics needs 80,000 parts per year. The cost of manufacturing 80,000 parts is computed as follows:

Direct materials$750,000
Direct labour600,000
Variable manufacturing overhead525,000
Fixed manufacturing overhead     650,000
Total manufacturing costs$2,525,000

If Victory Electronics buys the part, it would pay $.40 per unit to transport the parts to its manufacturing plant.  Purchasing the part from an outside source would enable the company to avoid 40% of fixed manufacturing overhead costs.  Victory Electronics's factory space freed up by purchasing the part from an outside supplier could be used to manufacture another product with a contribution margin of $65,000.

Prepare an analysis to show which alternative makes the best use of Victory Electronics's factory space:
1.  Make the part.
2.  Buy the part and leave facilities idle.
3.  Buy the part and use facilities to make another product.
Managerial Accounting, Canadian Edition ¦ Braun, Tietz, Pyper ¦ 2nd Edition
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Marked as best answer by jayhills49 on Jan 4, 2020

mcabuhat

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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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jayhills49

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

momolu

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Reply 3 on: Yesterday
Excellent

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