Camilla Company manufactures mobile phones. Mark Company has approached Camilla with a proposal to sell the company mobile phones at a total selling price of P125,000 for 100,000 units. Camilla has the following cost associated the production of 100,000 mobile phones: Direct materials P 46,500 Direct labor 43,500 Manufacturing overhead 60,000 Total P150,000 Manufacturing overhead includes P24,000 of costs that will be eliminated if the mobile phones are no longer produced by Camilla . What is the incremental cost or savings if the mobile phones are bought instead of made?
Camilla Company manufactures mobile phones. Mark Company has approached Camilla with a proposal to sell the company mobile phones at a total selling price of P125,000 for 100,000 units. Camilla has the following cost associated the production of 100,000 mobile phones:
Direct materials P 46,500
Direct labor 43,500
Manufacturing overhead 60,000
Total P150,000
Manufacturing overhead includes P24,000 of costs that will be eliminated if the mobile phones are no longer produced by Camilla .
What is the incremental cost or savings if the mobile phones are bought instead of made?
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