Krass Snowboard Mfg. Inc. manufactures snowboards. Its cost of making 3,500 bindings is
as follows:
| Variable manufacturing overhead | 4,500 |
| Fixed manufacturing overhead | 13,300 |
| Total manufacturing costs | $56,000 |
Suppose O'Brien will sell bindings to Krass for $15 each. Krass will pay $1.50 per unit to transport the bindings to its manufacturing plant, where it will add its own logo at a cost of $0.80 per binding. Krass' accountants predict that purchasing the bindings from O'Brien will enable the company to avoid $5,500 of fixed overhead. The facilities freed by purchasing bindings from O'Brien can be used to manufacture another product that will contribute $6,500 to profit. Total fixed costs will be the same as if Krass had produced the bindings. Show which alternative makes the best use of Krass' facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product.
Rotating Furnace for Making Parabolic Telescope Mirrors
Wild chimpanzees make and use simple tools to obtain food, learning tool making from one another.
Feast-making spoon (Wunkirmian). Liberia/IvoryCoast.
Typical Startup Cost Categories
Accounting (Making Entries)
Cost of Going to School