Answered You can hire a professional tutor to get the answer.

QUESTION

WLS Company currently makes a key component for their tractors in house. The costs are as follows:

WLS Company currently makes a key component for their tractors in house. The costs are as follows:

                                               Per Unit

Direct Materials                               $ 4.00

Direct Labor                          6.00

Allocated Overhead        10.00

Total Cost                           $20.00

If the component is purchased from an outside vendor the company will reduce their overhead costs by 80%. What is the maximum purchase price the company should consider to move to an outside vendor without respect to any other issue?

(present calculations for partial credit). Label your answer.

Show more
LEARN MORE EFFECTIVELY AND GET BETTER GRADES!
Ask a Question