Anobateh enterprise is trying to figure out what materials they are going to make or buy to their chosen supplier. The chosen supplier offers the following price for the materials. Material 1 is cost Php5, material 2 is cost Php8 and material 3 is cost Php5. The production department set the quantity of Materials 1 and 3 to 15,000 units while Material 2 is 12,400. The total cost of Material 1 is 80,000, Product B is 100,000 and Product C is 90,000. The non-relevant costs for Material 1 is 15,000, Material 2 has 25% non-relevant costs from the total costs and Material 3 is 5,000. Other information: Material 1 Material 2 Material 3 Labor hours / unit 0.15 0.20 0.25 1. How many units of each component should be outsourced and insourced? 2. If only 4,700 labor hours are available, how many units of each component should be produced internally or outsourced? FILL IN THE BLANKS FOR THE FINAL ANSWER Make sure to encode properly with comma (Example 19,469). If the answer is zero, just encode 0 1.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question
Anobateh enterprise is trying to figure out what materials they are going to make or buy to their chosen supplier. The chosen supplier
offers the following price for the materials. Material 1 is cost Php5, material 2 is cost Php8 and material 3 is cost Php5. The production
department set the quantity of Materials 1 and 3 to 15,000 units while Material 2 is 12,400. The total cost of Material 1 is 80,000, Product
B is 100,000 and Product C is 90,000. The non-relevant costs for Material 1 is 15,000, Material 2 has 25% non-relevant costs from the
total costs and Material 3 is 5,000.
Other information:
Material 1
Material 2
Material 3
Labor hours / unit
0.15
0.20
0.25
1. How many units of each component should be outsourced and insourced?
2. If only 4,700 labor hours are available, how many units of each component should be produced internally or outsourced?
FILL IN THE BLANKS FOR THE FINAL ANSWER
Make sure to encode properly with comma (Example 19,469). If the answer is zero, just encode 0
1.
Material 1
Material 2
Material 3
Encode MAKE or BUY
Units
15,000
12.400
15,000
2.
Units
Product A
Product B
Product C
Make
Buy
15.000
12.400
15.000
Transcribed Image Text:Anobateh enterprise is trying to figure out what materials they are going to make or buy to their chosen supplier. The chosen supplier offers the following price for the materials. Material 1 is cost Php5, material 2 is cost Php8 and material 3 is cost Php5. The production department set the quantity of Materials 1 and 3 to 15,000 units while Material 2 is 12,400. The total cost of Material 1 is 80,000, Product B is 100,000 and Product C is 90,000. The non-relevant costs for Material 1 is 15,000, Material 2 has 25% non-relevant costs from the total costs and Material 3 is 5,000. Other information: Material 1 Material 2 Material 3 Labor hours / unit 0.15 0.20 0.25 1. How many units of each component should be outsourced and insourced? 2. If only 4,700 labor hours are available, how many units of each component should be produced internally or outsourced? FILL IN THE BLANKS FOR THE FINAL ANSWER Make sure to encode properly with comma (Example 19,469). If the answer is zero, just encode 0 1. Material 1 Material 2 Material 3 Encode MAKE or BUY Units 15,000 12.400 15,000 2. Units Product A Product B Product C Make Buy 15.000 12.400 15.000
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education