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