please help me for this question McGraw-Hill Connect - ACCT Xr Class ACCT 92 in ConnectM MHE ReaderA https://player-ui.mheducation.com/#/epub/sn_ed42c#epubcfi(%2F6%2F352[data-uuid-fa092cfe0e164b0fa7482dc9b5157d88]!%2F4%2F2[data-80%4. Assume that direct labour becomes a constraint instead of direct materials. How will your answer to Requirement (2) above change?Page 436EXERCISE 9-7Determining Whether to Make or Buy [LO1– CC4]Golfers, Inc. (GI) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 100,000 packs(each consisting of four golf balls). Cost data are as follows:Per Pack100,000 PacksProduct costs directly traceable to balls:Direct materials$1.00$100,000Direct labour0.4050,000Variable manufacturing overhead0.2525,000Fixed manufacturing overhead12,000General allocated overhead35,000$212.000The full cost of one pack of golf balls is $2.12. GI has received an offer from an outside supplier to supply any desired quantity of balls at aprice of $1.80 per pack of four golf balls. The cost accounting department has provided the following information:a. The direct fixed manufacturing overhead is the cost of leasing the machine that stamps out the balls. The machine can produce amaximum of 500,000 balls per year. If the balls are bought, the machine will no longer be needed.b. No other costs will be affected.Required:1. Prepare an analysis showing whether GI would be better off making or buying the balls at a projected volume of 100,000 packs (400,000golf balls).2. At what volume would GI be indifferent between making and buying? What does the indifference point indicate?3. List other quantitative and/or qualitative factors that GI should consider before making the final decision.EXERCISE 9-8Deciding Whether to Drop or Keep a Product Line [LO1 – CC3]7:54 PMType here to searchA O (x ENG2020-11-10 McGraw-Hill Connect - ACCT 9 Xr Class ACCT 92 in ConnectM MHE ReaderA https://player-ui.mheducation.com/#/epub/sn_ed42c#epubcfi(%2F6%2F352[data-uuid-fa092cfe0e164b0fa7482dc9b5157d88]!%2F4%2F2[data-80%...AALIIIS oruer! DIouiu une speciai oruer ve accepieu at unis price!EXERCISE 9-6Utilizing a Constrained Resource [LO2 – CC7, 8]Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit of eachproduct follow:ProductABSelling price$110$155$140Less: Variable expenses:Direct materials185424Direct labour202020Other variable expenses452766Total variable expenses83101110Contribution margin$27$ 54$ 30The same raw material is used in all three products and costs $6 per kilogram. Barlow Company has only 5,000 kilograms of material onhand and will not be able to obtain any more material for several weeks due to a strike in its supplier's plant. Management is trying to decidewhich product(s) to concentrate on next week in filling its backlog of orders. Direct labour costs $12 per hour.Required:1. Compute the amount of contribution margin that will be obtained per kilogram of material used in each product.2. Which orders would you recommend that the company work on next week-the orders for product A, product B, or product C? Showcomputations.3. A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. If thereis unfilled demand for all three products, what is the highest price that Barlow Company should be willing to pay for an additionalkilogram of materials?4. Assume that direct labour becomes a constraint instead of direct materials. How will your answer to Requirement (2) above change?Page 436EXERCISE 97:54 PMType here to searchA O (x ENG2020-11-10II

Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Golfers, Inc. (GI) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 100,000 packs (each consisting of four golf balls). Cost data are as follows: Per Pack 100,000 Packs Product costs directly traceable to balls: Direct materials $1.00 $100,000 Direct labour 0.40 50,000 Variable manufacturing overhead 0.25 25,000 Fixed manufacturing overhead 12,000 General allocated overhead 35,000 $212,000 The full cost of one pack of golf balls is $2.12. GI has received an offer from an outside supplier to supply any desired quantity of balls at a price of $1.80 per pack of four golf balls. The cost accounting department has provided the following information: a. The direct fixed manufacturing overhead is the cost of leasing the machine that stamps out the balls. The machine can produce a maximum of 500,000 balls per year. If the balls are bought, the machine will no longer be needed. b. No other costs will be affected. Required: 1. Prepare an analysis showing whether GI would be better off making or buying the balls at a projected volume of 100,000 packs (400,000 golf balls). 2. At what volume would GI be indifferent between making and buying? What does the indifference point indicate? 3. List other quantitative and/or qualitative factors that GI should consider before making the final decision.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q