Davidson Manufacturing produces cabinet doors for farmhouse kitchens. Below is information related to the per unit manufacturing costs for Davidson's cabinet doors. VMOH FMOH Fixed Selling Exp. DL DM S$32.00 p/unit $15.00 p/unit $15,000.00 $45.00 p/unit $40.00 p/unit Cajun Cabinets has offered to sell the same door to avidson Manufacturing for $144 p/door. Assume Davidson has no other use for their facilities, what should they do? a. Buy from Cajun Cabinets and save $11 p/door b. Buy from Cajun Cabinets and save Fixed Costs of $15,000 C. Make the door themselves and save $57 p/door d. Make the door themselves and save $27 p/door
Davidson Manufacturing produces cabinet doors for farmhouse kitchens. Below is information related to the per unit manufacturing costs for Davidson's cabinet doors. VMOH FMOH Fixed Selling Exp. DL DM S$32.00 p/unit $15.00 p/unit $15,000.00 $45.00 p/unit $40.00 p/unit Cajun Cabinets has offered to sell the same door to avidson Manufacturing for $144 p/door. Assume Davidson has no other use for their facilities, what should they do? a. Buy from Cajun Cabinets and save $11 p/door b. Buy from Cajun Cabinets and save Fixed Costs of $15,000 C. Make the door themselves and save $57 p/door d. Make the door themselves and save $27 p/door
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Davidson Manufacturing produces cabinet doors for farmhouse kitchens. Below is information related to the per unit manufacturing costs for Davidson's cabinet doors. VMOH
FMOH Fixed Selling Exp. DL DM $32.00 p/unit $15.00 p/unit $15,000.00 $45.00 p/unit $40.00 p/unit Cajun Cabinets has offered to sell the same door to avidson Manufacturing
for $144 p/door. Assume Davidson has no other use for their facilities, what should they do? a. Buy from Cajun Cabinets and save $11 p/door b. Buy from Cajun Cabinets and
save Fixed Costs of $15,000 C. Make the door themselves and save $57 p/door d. Make the door themselves and save $27 p/door
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