Business, 08.07.2019 22:40 guccikathyyy6195
Pplier has offered to make the part and sell it to the company for $28.70 each. if this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. the special equipment used to make the part was purchased many years ago and has no salvage value or other use. the allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. in addition, the space used to make part e14 could be used to make more of one of the company's other products, generating an additional segment margin of $30,000 per year for that product. the annual financial advantage (disadvantage) for the company as a result of buying part e14 from the outside supplier should be:
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Pplier has offered to make the part and sell it to the company for $28.70 each. if this offer is acc...
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