Ruth Company produces 1,000 units of a necessary component with the following costs:
Direct Materials $27,000
Direct Labor 16,000
Variable Overhead 4,000
Fixed Overhead 7,000
None of Ruth Company's fixed overhead costs can be reduced, but another product could be made that would increase profit contribution by $8,000 if the components were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Ruth Company would be willing to accept to acquire the 1,000 units externally?
a) $46,000
b) $51,000
c) $58,000
d) $55,000
d) $55,000
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For each of the following accounting methods, indicate how the investor's investment account will be affected by the investor's share of the investee's earnings after the date of acquisition Fair Value Option Equity Method
a. No effect No effect b. Increase Increase c. Increase No effect d. No effect Increase
To determine when a product reaches a particular stage(s) in a given market at a given time, and what the thrust of the advertising message should be, you can utilize the:
A) advertising spiral. B) life cycle. C) product feature grid. D) strategy spiral. E) SWOT analysis.