3. Syanton manufactures a particular computer component. Manufacturing cost per units are as follows: Direct materials P50 500 Direct labor Variable overhead Fixed overhead 250 _ 400 P1,200 Total manufacturing costs Fredix, Inc. has contracted Syanton with an offer to sell 10,000 of the component for P1,100 per unit. If Syanton accepts the proposals, P2,500,000 of the fixed overhead will be eliminated. Should Syanton make or buy the component and why? a. Buy due to savings of P1,000,000 b. Make due to savings of P500,000 c. Buy due to savings of P2,500,000 d. Make due to savings of P3,000,000

3. Syanton manufactures a particular computer component. Manufacturing cost per units are as follows: Direct materials P50 500 Direct labor Variable overhead Fixed overhead 250 _ 400 P1,200 Total manufacturing costs Fredix, Inc. has contracted Syanton with an offer to sell 10,000 of the component for P1,100 per unit. If Syanton accepts the proposals, P2,500,000 of the fixed overhead will be eliminated. Should Syanton make or buy the component and why? a. Buy due to savings of P1,000,000 b. Make due to savings of P500,000 c. Buy due to savings of P2,500,000 d. Make due to savings of P3,000,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 3CMA: Aril Industries is a multiproduct company that currently manufactures 30,000 units of Part 730 each...

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Similar questions

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