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manufactures 45,000 units of part MR24 each month for use in prod sed to produce part MR24 have a fixed monthly cost of $225,000 and th. If the company were to buy part MR24 from an outside supplier. t

manufactures 45,000 units of part MR24 each month for use in prod sed to produce part MR24 have a fixed monthly cost of $225,000 and th. If the company were to buy part MR24 from an outside supplier. t

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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! Required information [The following information applies to the questions displayed below.] Hoboken Industries currently manufactures 45,000 units of part MR24 each month for use in production of several of its products. The facilities now used to produce part MR24 have a fixed monthly cost of $225,000 and a capacity to produce 91,500 units per month. If the company were to buy part MR24 from an outside supplier, the facilities would be idle, but its fixed costs would continue at 40 percent of their present amount. The variable production costs of part MR24 are $13 per unit. Required: 1. If Hoboken Industries continues to use 45,000 units of part MR24 each month, it would realize a net benefit by purchasing part MR24 from an outside supplier only if the supplier's unit price is less than what amount? Amount
Transcribed Image Text:! Required information [The following information applies to the questions displayed below.] Hoboken Industries currently manufactures 45,000 units of part MR24 each month for use in production of several of its products. The facilities now used to produce part MR24 have a fixed monthly cost of $225,000 and a capacity to produce 91,500 units per month. If the company were to buy part MR24 from an outside supplier, the facilities would be idle, but its fixed costs would continue at 40 percent of their present amount. The variable production costs of part MR24 are $13 per unit. Required: 1. If Hoboken Industries continues to use 45,000 units of part MR24 each month, it would realize a net benefit by purchasing part MR24 from an outside supplier only if the supplier's unit price is less than what amount? Amount
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