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1, page ny (Make Requirement: What is the advantage/(disadvantage) of accepting the outside supplier's offer Problem 7 (Make or Buy) Mickey Company uses 5,000,units of Part Z each year as a component in the assembly of one of its products. The company is presently producing Part Z internally at a total cost of P100,000, computed as follows: Direct materials Direct labor P 15,000 30,000 10,000 Variable manufacturing overhead Fived manufacturing orhood

1, page ny (Make Requirement: What is the advantage/(disadvantage) of accepting the outside supplier's offer Problem 7 (Make or Buy) Mickey Company uses 5,000,units of Part Z each year as a component in the assembly of one of its products. The company is presently producing Part Z internally at a total cost of P100,000, computed as follows: Direct materials Direct labor P 15,000 30,000 10,000 Variable manufacturing overhead Fived manufacturing orhood

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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ACTIVITY 5 Problem 7, page 317- Mickey Company (Make or buy). Requirement: What is the advantage/(disadvantage) of accepting the outside supplier's offer? Problem 7 (Make or Buy) Mickey Company uses 5,000,units of Part Z each year as a component in the assembly of one of its products. The company is presently producing Part Z internally at a total cost of P100,000, computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total costs P 15,000 30,000 10,000 45,000 P100,000 An outside supplier has offered to provide Part Z at a price of P18 per unit. Mickey Company stops producing the part internally, one-third of the fixed manufacturing overhead would be eliminated. SOLUTION & ANSWER:
Transcribed Image Text:ACTIVITY 5 Problem 7, page 317- Mickey Company (Make or buy). Requirement: What is the advantage/(disadvantage) of accepting the outside supplier's offer? Problem 7 (Make or Buy) Mickey Company uses 5,000,units of Part Z each year as a component in the assembly of one of its products. The company is presently producing Part Z internally at a total cost of P100,000, computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total costs P 15,000 30,000 10,000 45,000 P100,000 An outside supplier has offered to provide Part Z at a price of P18 per unit. Mickey Company stops producing the part internally, one-third of the fixed manufacturing overhead would be eliminated. SOLUTION & ANSWER:
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