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The Chateau Company manufactures 4,000 telephones per year. The-(Answered)

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Question

The Chateau Company manufactures 4,000 telephones per year.? The full manufacturing costs per telephone are as follows:?

Direct materials

$? 4

Direct labor

16

Variable manufacturing overhead

12

Average fixed manufacturing overhead

? 12

Total

$44

?

The Quick Assembly Company has offered to sell Chateau 4,000 telephones for $31 per unit.? If Chateau accepts the offer, $20,000 of fixed overhead will be eliminated.?

?Chateau should:


Make the telephones; the savings is $4,000


Buy the telephones; the savings is $35,000


Buy the telephones; the savings is $24,000


Make the telephones; the savings is $24,000

 

Paper#9257582 | Written in 27-Jul-2016

Price : $16
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