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Author Question: Paper Moon, a manufacturer of outdoor lighting fixtures is operating at less than full capacity. The ... (Read 53 times)

ShannenConnor

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Paper Moon, a manufacturer of outdoor lighting fixtures is operating at less than full capacity. The plant manager is considering making the mounting brackets now being purchased from a supplier at $8 each. Paper Moon already has the equipment to produce the brackets. The plant manager has analyzed the cost of producing the brackets and determined that each bracket will require $2 of direct material, $1 of direct labor, and $8 of manufacturing overhead. Seventy-five percent of the manufacturing overhead is a fixed cost that would not be affected by the decision to manufacture the brackets. Should Paper Moon continue to purchase the brackets or produce them internally?


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Marked as best answer by ShannenConnor on Feb 5, 2023

Jaclyn92G6

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ShannenConnor

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Reply 2 on: Feb 5, 2023
Thanks for the timely response, appreciate it


6ana001

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Reply 3 on: Yesterday
Gracias!

 

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