00 %24 Beta Inc. is currently making one of its components. Its annual requirements are 20,000 units. The variable cost per unit is $10 and the fixed cost per unit is $10. Included in this fixed cost is the $75,000 salary of the factory supervisor, which would continue to be paid even if the components were purchased. Creto Inc. has offered to supply Beta with 20,000 units for $16 per unit. What is the dollar advantage or disadvantage to making the components? Select one: none of these O$5,000 advantage O $5,000 disadvantage $80,000 disadvantage Clear my choice Next page Type here to search dy 112 ins. t9 144 f5 114 4. 23 3. 11 1/4 1/2 7. 4. 2. 2. v]] LEGO
00 %24 Beta Inc. is currently making one of its components. Its annual requirements are 20,000 units. The variable cost per unit is $10 and the fixed cost per unit is $10. Included in this fixed cost is the $75,000 salary of the factory supervisor, which would continue to be paid even if the components were purchased. Creto Inc. has offered to supply Beta with 20,000 units for $16 per unit. What is the dollar advantage or disadvantage to making the components? Select one: none of these O$5,000 advantage O $5,000 disadvantage $80,000 disadvantage Clear my choice Next page Type here to search dy 112 ins. t9 144 f5 114 4. 23 3. 11 1/4 1/2 7. 4. 2. 2. v]] LEGO
Chapter16: Financial Planning And Control
Section: Chapter Questions
Problem 5PROB
Related questions
Question
![00
%24
Beta Inc. is currently making one of its components. Its annual requirements are 20,000 units. The variable
cost per unit is $10 and the fixed cost per unit is $10. Included in this fixed cost is the $75,000 salary of the
factory supervisor, which would continue to be paid even if the components were purchased.
Creto Inc. has offered to supply Beta with 20,000 units for $16 per unit.
What is the dollar advantage or disadvantage to making the components?
Select one:
none of these
O$5,000 advantage
O $5,000 disadvantage
$80,000 disadvantage
Clear my choice
Next page
Type here to search
dy
112
ins.
t9 144
f5
114
4.
23
3.
11
1/4
1/2
7.
4.
2.
2.
v]]
LEGO](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F963efa39-4808-43ff-b46a-57ddc557fc1f%2Fbb1cb4c9-6062-478d-a7af-e1b499e3475b%2Fdejpipj.jpeg&w=3840&q=75)
Transcribed Image Text:00
%24
Beta Inc. is currently making one of its components. Its annual requirements are 20,000 units. The variable
cost per unit is $10 and the fixed cost per unit is $10. Included in this fixed cost is the $75,000 salary of the
factory supervisor, which would continue to be paid even if the components were purchased.
Creto Inc. has offered to supply Beta with 20,000 units for $16 per unit.
What is the dollar advantage or disadvantage to making the components?
Select one:
none of these
O$5,000 advantage
O $5,000 disadvantage
$80,000 disadvantage
Clear my choice
Next page
Type here to search
dy
112
ins.
t9 144
f5
114
4.
23
3.
11
1/4
1/2
7.
4.
2.
2.
v]]
LEGO
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