ACC 561 Final Guide( New, with Excel File) For more course tutorials visit www. tutorialrank. com
not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:
29. Carter, Inc. can make 100 units of a necessary component part with the following costs:
Direct Materials $ 120,000 Direct Labor 20,000 Variable Overhead 60,000 Fixed Overhead 40,000
If Carter can purchase the component externally for $ 220,000 and only $ 10,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?
30. A company has a process that results in 15,000 pounds of Product A that can be sold for $ 16 per pound. An alternative would be to process Product A further at a cost of $ 200,000 and then sell it for $ 28 per pound. Should management sell Product A now or should Product A be processed further and then sold? What is the effect of the action?
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ACC 561 Final Guide( New, with Excel File) For more course tutorials visit www. tutorialrank. com
This Tutorial contains Excel Sheet to solve Problem for any Values