Apollonia Dental Services is part of an HMO that operates in a large metropolitan area. Currently, Apollonia has its own dental laboratory to produce two varieties of porcelain crowns—all porcelain and porcelain fused to metal. The unit costs to produce the crowns are as follows:
Fixed overhead is detailed as follows:
Overhead is applied on the basis of direct labor hours. The rates above were computed using 8,000 direct labor hours. No significant non-unit-level overhead costs are incurred.
A local dental laboratory has offered to supply Apollonia all the crowns it needs. Its price is $265 for all-porcelain crowns and $145 for porcelain-fused-to-metal crowns; however, the offer is conditional on supplying both types of crowns—it will not supply just one type for the price indicated. If the offer is accepted, the equipment used by Apollonia’s laboratory would be scrapped (it is old and has no market value), and the lab facility would be closed. Apollonia uses 2,500 all-porcelain crowns and 1,000 porcelain-fused-to-metal crowns per year.
Required:
Management, Loose-Leaf Version
Economics For Today
Essentials of Economics (MindTap Course List)
Corporate Financial Accounting
Statistics for Business & Economics, Revised (MindTap Course List)
MKTG 12:STUDENT ED.-TEXT
Principles of Macroeconomics (MindTap Course List)
Survey of Accounting (Accounting I)
Financial & Managerial Accounting
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting (Book Only): A Career Approach
Principles of Microeconomics (MindTap Course List)
Foundations of Business (MindTap Course List)
College Accounting (Book Only): A Career Approach
Economics (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Financial Accounting
Principles of Macroeconomics (MindTap Course List)
Accounting (Text Only)
Macroeconomics
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Essentials of Business Communication (MindTap Course List)
Corporate Financial Accounting
STATISTICS F/BUSINESS+ECONOMICS-TEXT
College Accounting, Chapters 1-27
Brief Principles of Macroeconomics (MindTap Course List)
Purchasing and Supply Chain Management
Accounting Information Systems
Contemporary Marketing
Practical Management Science
Accounting Information Systems
Exploring Economics
Pkg Acc Infor Systems MS VISIO CD
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Principles of Economics (MindTap Course List)
Managerial Accounting: The Cornerstone of Business Decision-Making
Financial And Managerial Accounting
Fundamentals of Financial Management (MindTap Course List)
Financial Accounting
Financial & Managerial Accounting
Fundamentals of Financial Management (MindTap Course List)
Intermediate Accounting: Reporting And Analysis
Cornerstones of Financial Accounting
Managerial Accounting
Microeconomics
Micro Economics For Today
Understanding Management (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
MACROECONOMICS FOR TODAY
Microeconomics: Private and Public Choice (MindTap Course List)
Macroeconomics: Private and Public Choice (MindTap Course List)