Contribution margin per pound of Raw material Earned by each of the products. Decision of Making or Buying and Contribution margin: When a company takes decision, whether to manufacture a component internally or buy from outside it is called make or but decision. While taking the decision, the variable costs of manufacturing the product is compared with the purchase price of the product when bought from the outside supplier. In relevant costing, the decision to make or buy a product component depends upon the analysis of costs. Avoidable fixed costs and opportunity costs are also considered in the analysis While finding the contribution margin we have to deduct all the variable costs of manufacturing from selling price.

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Answer 1

Question

Chapter 12, Problem 12F15

To determine

Contribution margin per pound of Raw material Earned by each of the products.

Decision of Making or Buying and Contribution margin:

When a company takes decision, whether to manufacture a component internally or buy from outside it is called make or but decision. While taking the decision, the variable costs of manufacturing the product is compared with the purchase price of the product when bought from the outside supplier.

In relevant costing, the decision to make or buy a product component depends upon the analysis of costs. Avoidable fixed costs and opportunity costs are also considered in the analysis

While finding the contribution margin we have to deduct all the variable costs of manufacturing from selling price.

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Answer 2

Question

Chapter 12, Problem 12F15

To determine

Contribution margin per pound of Raw material Earned by each of the products.

Decision of Making or Buying and Contribution margin:

When a company takes decision, whether to manufacture a component internally or buy from outside it is called make or but decision. While taking the decision, the variable costs of manufacturing the product is compared with the purchase price of the product when bought from the outside supplier.

In relevant costing, the decision to make or buy a product component depends upon the analysis of costs. Avoidable fixed costs and opportunity costs are also considered in the analysis

While finding the contribution margin we have to deduct all the variable costs of manufacturing from selling price.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 12, Problem 12F15

To determine

Contribution margin per pound of Raw material Earned by each of the products.

Decision of Making or Buying and Contribution margin:

When a company takes decision, whether to manufacture a component internally or buy from outside it is called make or but decision. While taking the decision, the variable costs of manufacturing the product is compared with the purchase price of the product when bought from the outside supplier.

In relevant costing, the decision to make or buy a product component depends upon the analysis of costs. Avoidable fixed costs and opportunity costs are also considered in the analysis

While finding the contribution margin we have to deduct all the variable costs of manufacturing from selling price.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 12F15

To determine

Contribution margin per pound of Raw material Earned by each of the products.

Decision of Making or Buying and Contribution margin:

When a company takes decision, whether to manufacture a component internally or buy from outside it is called make or but decision. While taking the decision, the variable costs of manufacturing the product is compared with the purchase price of the product when bought from the outside supplier.

In relevant costing, the decision to make or buy a product component depends upon the analysis of costs. Avoidable fixed costs and opportunity costs are also considered in the analysis

While finding the contribution margin we have to deduct all the variable costs of manufacturing from selling price.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 12F15

To determine

Contribution margin per pound of Raw material Earned by each of the products.

Decision of Making or Buying and Contribution margin:

When a company takes decision, whether to manufacture a component internally or buy from outside it is called make or but decision. While taking the decision, the variable costs of manufacturing the product is compared with the purchase price of the product when bought from the outside supplier.

In relevant costing, the decision to make or buy a product component depends upon the analysis of costs. Avoidable fixed costs and opportunity costs are also considered in the analysis

While finding the contribution margin we have to deduct all the variable costs of manufacturing from selling price.

Answer 6

Chapter 12, Problem 12F15

To determine

Contribution margin per pound of Raw material Earned by each of the products.

Decision of Making or Buying and Contribution margin:

When a company takes decision, whether to manufacture a component internally or buy from outside it is called make or but decision. While taking the decision, the variable costs of manufacturing the product is compared with the purchase price of the product when bought from the outside supplier.

In relevant costing, the decision to make or buy a product component depends upon the analysis of costs. Avoidable fixed costs and opportunity costs are also considered in the analysis

While finding the contribution margin we have to deduct all the variable costs of manufacturing from selling price.

Answer 7

Chapter 12, Problem 12F15

To determine

Contribution margin per pound of Raw material Earned by each of the products.

Decision of Making or Buying and Contribution margin:

When a company takes decision, whether to manufacture a component internally or buy from outside it is called make or but decision. While taking the decision, the variable costs of manufacturing the product is compared with the purchase price of the product when bought from the outside supplier.

In relevant costing, the decision to make or buy a product component depends upon the analysis of costs. Avoidable fixed costs and opportunity costs are also considered in the analysis

While finding the contribution margin we have to deduct all the variable costs of manufacturing from selling price.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 12.A - EXERCISE 12A-1 Absorption Costing Approach to...Ch. 12.A - EXERCISE 12A-2 Customer Latitude and Pricing...Ch. 12.A - Prob. 3E Ch. 12.A - Prob. 4E Ch. 12.A - Prob. 5E Ch. 12.A - EXERCISE 12A-6 Value-Based Pricing; Absorption...Ch. 12.A - Prob. 7E Ch. 12.A - Prob. 8P Ch. 12.A - Prob. 9P Ch. 12.A - Prob. 10P

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Chapter 12 Solutions