Question 45Assume a division of HP Inc currently makes 50,000 circuit boards per year used in producing diagnostic electronic instruments at the cost of 150 per board, considering of variablecosts per unit of $35 and feed costs per unit of $15. Further, assume Sarmina Corporation offers to sell HP the 50.000 circuit boards for $50 each if HP accepts this offer thefacilities currently used to make the boards could be rented to one of HP's suppliers for $75,000 per year. In addition, $8 per unit of the fixed overhead applied to the circuit boardswould be totally eliminated.Should HP outsource this component from Sanmina Corporation Support your answer with relevant cost calculations. Make-or-Buy) Decision.

Make or buy decision is a method of choosing the option of either manufacturing or outsourcing the…

Question 45 Assume a division of HP Inc. curently makes 50.000 circuit boards per year used in producing diagnostic electronic instruments at the cost of $50 per boant, considering of variable costs per unit of $35 and feed costs per unit of $15. Further, aume Savina Corporation offers to sell HP the 50.000 cut boards for $50 each Paccepts this offer the facilities currently used to make the boards could be rented to one of HP's suppliers for $75.000 per year. In addition, $8 per unit of the fixed overhead applied to the circuit boards would be totally eliminated. Should HP outsource this component from Sanmina Corporation Support your answer with relevant cost calculations. Make-or-Buy) Decision

Question 45 Assume a division of HP Inc. curently makes 50.000 circuit boards per year used in producing diagnostic electronic instruments at the cost of $50 per boant, considering of variable costs per unit of $35 and feed costs per unit of $15. Further, aume Savina Corporation offers to sell HP the 50.000 cut boards for $50 each Paccepts this offer the facilities currently used to make the boards could be rented to one of HP's suppliers for $75.000 per year. In addition, $8 per unit of the fixed overhead applied to the circuit boards would be totally eliminated. Should HP outsource this component from Sanmina Corporation Support your answer with relevant cost calculations. Make-or-Buy) Decision

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...

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