Incremental future revenue Incremental future costs Direct materials Direct manufacturing labor Variable overhead (utilities and electricity) Materials-handling and setup overheads Incremental future operating income 3,400,000 1,000,000 600,000 500,000 8,000,000 5,500,000 2,500,000
Incremental future revenue Incremental future costs Direct materials Direct manufacturing labor Variable overhead (utilities and electricity) Materials-handling and setup overheads Incremental future operating income 3,400,000 1,000,000 600,000 500,000 8,000,000 5,500,000 2,500,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Do not give answer in image
![Incremental future revenue
Incremental future costs
Direct materials
Direct manufacturing labor
Variable overhead (utilities and electricity)
Materials-handling and setup overheads
Incremental future operating income
Relevant cost:
Make
Buy
Opportunity cost approach
What is the total relevant cost for both alternatives?
Make 17,500,000; Buy 16,000,000
Make 15,000,000; Buy 13,500,000
Make 17,500,000; Buy 2,500,000
None of the other alternatives are correct.
Make 15,000,000; Buy 16,000,000
3,400,000
1,000,000
600,000
500,000
8,000,000
5,500,000
2,500,000
15,000,000
16,000,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F316033f6-8ac4-43f3-92a1-002916adf7ce%2Fe30183ed-076a-4689-9018-58fe79fac18d%2Fnta46j_processed.png&w=3840&q=75)
Transcribed Image Text:Incremental future revenue
Incremental future costs
Direct materials
Direct manufacturing labor
Variable overhead (utilities and electricity)
Materials-handling and setup overheads
Incremental future operating income
Relevant cost:
Make
Buy
Opportunity cost approach
What is the total relevant cost for both alternatives?
Make 17,500,000; Buy 16,000,000
Make 15,000,000; Buy 13,500,000
Make 17,500,000; Buy 2,500,000
None of the other alternatives are correct.
Make 15,000,000; Buy 16,000,000
3,400,000
1,000,000
600,000
500,000
8,000,000
5,500,000
2,500,000
15,000,000
16,000,000
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