Globaltronic Sdn Bhd has received a special marketing choice from one of the world's electronic suppliers. The suppliers want to sell to Globaltronic a certain electronic component for RM19 per unit. Currently Globaltronic makes the part and its management is seriously considering the buying choice. Unit manufactured 5,000 Direct materials cost RM36,000 Direct labor cost RM48,000 Fixed costs RM20,000 Variable costs RM10,000. If Globaltronic buy the part,its fixed costs will reduce by 90% and the variable costs will reduce by 95% perform incremental analysis and determine whether Globaltronic should buy the part or continue maling the part?
Globaltronic Sdn Bhd has received a special marketing choice from one of the world's electronic suppliers. The suppliers want to sell to Globaltronic a certain electronic component for RM19 per unit. Currently Globaltronic makes the part and its management is seriously considering the buying choice. Unit manufactured 5,000 Direct materials cost RM36,000 Direct labor cost RM48,000 Fixed costs RM20,000 Variable costs RM10,000. If Globaltronic buy the part,its fixed costs will reduce by 90% and the variable costs will reduce by 95% perform incremental analysis and determine whether Globaltronic should buy the part or continue maling the part?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Globaltronic Sdn Bhd has received a special
marketing choice from one of the world's
electronic suppliers. The suppliers want to sell
to Globaltronic a certain electronic
component for RM19 per unit. Currently
Globaltronic makes the part and its
management is seriously considering the
buying choice. Unit manufactured 5,000
Direct materials cost RM36,000 Direct labor
cost RM48,000 Fixed costs RM20,000
Variable costs RM10,000. If Globaltronic buy
the part,its fixed costs will reduce by 90%
and the variable costs will reduce by 95%
perform incremental analysis and determine
whether Globaltronic should buy the part or
continue maling the part?
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