Dough, Re, Mi Inc. sells many different types of cookie dough.  The company is deciding whether to continue making its own dough or to outsource.  If the company outsources, they will eliminate all of the variable overhead and 30% of the fixed manufacturing overhead.  Use the information below to determine whether Dough, Re, Mi Inc. should outsource or not. Data     Units   Per unit   Relevant? Sales price per unit                        5,450    $              104.00     Direct materials per unit                            21.00     Direct labor per unit                            18.00     Variable manufacturing overhead per unit                            15.00     Fixed manufacturing overhead (MOH) : pe

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Dough, Re, Mi Inc. sells many different types of cookie dough.  The company is deciding whether to continue making its own dough or to outsource.  If the company outsources, they will eliminate all of the variable overhead and 30% of the fixed manufacturing overhead.  Use the information below to determine whether Dough, Re, Mi Inc. should outsource or not.
Data     Units   Per unit   Relevant?
Sales price per unit                        5,450    $              104.00    
Direct materials per unit                            21.00    
Direct labor per unit                            18.00    
Variable manufacturing overhead per unit                            15.00    
Fixed manufacturing overhead (MOH) : per month                            21.00    
Avoidable fixed MOH per month            
Unavoidable fixed MOH per month            
Sales commissions per unit                               4.00    
Advertising costs per month                               1.60    
Purchase price of outsourced product per unit                            65.00    
Shipping costs of outsourced product per unit                               2.00    

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