This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Victory Electronics makes a part used in the manufacture of desktop computers. Management is ... (Read 44 times)

jayhills49

  • Hero Member
  • *****
  • Posts: 559
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
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jayhills49 on Jan 4, 2020

mcabuhat

  • Sr. Member
  • ****
  • Posts: 344
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.
Answer Preview
Only 36% of students answer this correctly


jayhills49

  • Member
  • Posts: 559
Reply 2 on: Jan 4, 2020
:D TYSM

upturnedfurball

  • Member
  • Posts: 334
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Typical components of software for a practice management system (PMS). Typical components of software for a practice management system (PMS).
How to solve any rational equation by finding the lowest common denominator (Part 2) How to solve any rational equation by finding the lowest common denominator (Part 2)
How to find the unknown angle of a triangle using the sine law (Part 1) How to find the unknown angle of a triangle using the sine law (Part 1)
How to solve simple percent word problems (Part 1) How to solve simple percent word problems (Part 1)
Data management questions Data management questions
Inadequate Airway, Breathing and Circulation in the Trauma Patient (Part 1) Inadequate Airway, Breathing and Circulation in the Trauma Patient (Part 1)
Video: Epinephrine/NE (heart rate, altered blood flow, glycogenolysis & bronchodilation)

For a complete list of videos, visit our video library