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Linda_us, Finance, Accounts & Homework Tutor
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3. (TCOD) The management of Thews Corporation is considering

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3. (TCOD) The management of Thews Corporation is considering dropping product E28I. Data from the company's accounting system appear below.
Sales $480,000
Variable Expenses $202,000
Fixed Manufacturing Expenses $158,000
Fixed Selling and Administrative Expenses $130,000

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $86,000 of the fixed manufacturing expenses and $67,000 of the fixed selling and a
I am working on it.
Linda_us and 2 other Homework Specialists are ready to help you
Customer: replied 3 years ago.

What about the other two questions that I ask for? Question number 4 and 5. Here they are. please let me knoe my clock is running out and I need your help if not I will faild again....


 




4. (TCO D) Fouch Company makes 30,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows.


























Direct Materials



$15.70



Direct Labor



$17.50



Variable Manufacturing Overhead



$4.50



Fixed Manufacturing Overhead



$14.60



Unit Product Cost



$52.30




An outside supplier has offered to sell the company all of these parts it needs for $51.90 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $219,000 per year.


If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $6.20 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products.

Required:

i. How much of the unit product cost of $52.30 is relevant in the decision of whether to make or buy the part?

ii. What is the net total dollar advantage (disadvantage) of purchasing the part rather than making it?

iii. What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 30,000 units required each year?
(Points : 15)





5. (TCO D) A customer has asked Clougherty Corporation to supply 4,000 units of product M97, with some modifications, for $40.10 each. The normal selling price of this product is $48.00 each. The normal unit product cost of product M97 is computed as follows.


























Direct Materials



$18.50



Direct Labor



$1.20



Variable manufacturing overhead



$8.40



Fixed manufacturing overhead



$3.90



Unit product cost



$32.00






These questions were not posted initially. How much time do we have?
Customer: replied 3 years ago.

Less than an hour. I posted at the beginning of the post, however, Linda I need your help, please...

I am working on them and should take me around 30 minutes.


Please remember to rate my service as Excellent/Good once I post the solution so that I get paid for helping you.
Customer: replied 3 years ago.

No a problem Linda! Thank you so much. I,m going to need more help in the near future. any other way to contact you beside this site?

No other way. I would be available on this site if you ever need help in future. You can request me by writing "FOR LINDA" at start of your post.
Customer: replied 3 years ago.

How much longer for the other answers... 4 and 5....


Click here for solution

I asked for 30 minutes but done in 20 :-)
Customer: replied 3 years ago.

Linda,


I still need question number 5


 




5. (TCO D) A customer has asked Clougherty Corporation to supply 4,000 units of product M97, with some modifications, for $40.10 each. The normal selling price of this product is $48.00 each. The normal unit product cost of product M97 is computed as follows.


























Direct Materials



$18.50



Direct Labor



$1.20



Variable manufacturing overhead



$8.40



Fixed manufacturing overhead



$3.90



Unit product cost



$32.00





Its just below the answer of Fouch.
Customer: replied 3 years ago.

Linda, I still need the answer 5,


 




5. (TCO D) A customer has asked Clougherty Corporation to supply 4,000 units of product M97, with some modifications, for $40.10 each. The normal selling price of this product is $48.00 each. The normal unit product cost of product M97 is computed as follows.


























Direct Materials



$18.50



Direct Labor



$1.20



Variable manufacturing overhead



$8.40



Fixed manufacturing overhead



$3.90



Unit product cost



$32.00





Please help...


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Customer: replied 3 years ago.

Linda, Are you available tomorrow after 4:30 p.m.. I'm going to need your help.

Hi Paul,
I am available after 6 pm EST. Is that ok?
Customer: replied 3 years ago.

No a problem Linda... I'll be talking to you tomorrow after 6:00 pm EST is that is ok with you. Thank you so much for your help and have a great day!


 


Paul

Thanks Paul. Any time after 6PM is fine with me.
Customer: replied 3 years ago.

You got it Linda, I see you tomorrow after 6:00 pm.

OK. See you then
Customer: replied 3 years ago.

Hi Linda,


 


Let me know when can you we able to help me so I can Start the time for my final. By the way even do I did not did as well as I wanted to do, thank to you, I did ok, however this is very important for me and this determine my passing grade. So please, need your help!!!!

I am ready. Please create a new post for small amount like $10. Then once I see the number of questions and complexity we can decide upon the price.

Do write FOR LINDA at the start of your post.

Customer: replied 3 years ago.

Linda, how do a do that.... Where do I have to go.... I want to make sure that you are the one that work with me on this assignment.



Click this link

http://www.justanswer.com/homework/expert-linda-us/

and just write "FOR LINDA" and once I reply we can begin our questions.
Customer: replied 3 years ago.

Linda,


 


they are asking me for my credit card... But I do not see you....

Dont worry when you start a new question and write "FOR LINDa" the question will come to me.
Customer: replied 3 years ago.

Ok Linda,


 


I'm going to sent the questions in a few... a have to paste and copy so I can attach it to you. Once again thanks a million.


You can attach the file by clicking the paper clip icon in tool bar or you can use site like www.box.com and once you upload the file there you can share the link here.

Click here to see upload process on site

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