Question 45Assume a division of HP Inc currently makes 50,000 circuit boards per year used in producing diagnostic electronic instruments at the cost of 150 per board, considering of variablecosts per unit of $35 and feed costs per unit of $15. Further, assume Sarmina Corporation offers to sell HP the 50.000 circuit boards for $50 each if HP accepts this offer thefacilities currently used to make the boards could be rented to one of HP's suppliers for $75,000 per year. In addition, $8 per unit of the fixed overhead applied to the circuit boardswould be totally eliminated.Should HP outsource this component from Sanmina Corporation Support your answer with relevant cost calculations. Make-or-Buy) Decision.

Question 45 Assume a division of HP Inc. curently makes 50.000 circuit boards per year used in producing diagnostic electronic instruments at the cost of $50 per boant, considering of variable costs per unit of $35 and feed costs per unit of $15. Further, aume Savina Corporation offers to sell HP the 50.000 cut boards for $50 each Paccepts this offer the facilities currently used to make the boards could be rented to one of HP's suppliers for $75.000 per year. In addition, $8 per unit of the fixed overhead applied to the circuit boards would be totally eliminated. Should HP outsource this component from Sanmina Corporation Support your answer with relevant cost calculations. Make-or-Buy) Decision

Question 45 Assume a division of HP Inc. curently makes 50.000 circuit boards per year used in producing diagnostic electronic instruments at the cost of $50 per boant, considering of variable costs per unit of $35 and feed costs per unit of $15. Further, aume Savina Corporation offers to sell HP the 50.000 cut boards for $50 each Paccepts this offer the facilities currently used to make the boards could be rented to one of HP's suppliers for $75.000 per year. In addition, $8 per unit of the fixed overhead applied to the circuit boards would be totally eliminated. Should HP outsource this component from Sanmina Corporation Support your answer with relevant cost calculations. Make-or-Buy) Decision

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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Question 3: ( The DELL Company is in the process of developing a new product called (ZZ). The product current design carries with it following costs: Statements Total Costs Total variable production costs 780,000 Fixed manufacturing overhead 220,000 Total production costs 1,000,000 Total selling, general, and administrative expenses 400,000 Total costs and expenses 1,400,000 Units to be Produced 40,000. The company requires a $ 320,000 profit, and 20% return on assets (ROA). The company uses assets totaling $ 1,600,000 in producing. Instructions: a. Compute the price of (ZZ) using the Gross margin pricing method (^ b. Compute the price of (ZZ) using the Return on assets pricing method. c. Prepare income statement to support your answer. ·
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