Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / QUESTION 9 Super Impact Protection Ltd produce shock absorbing phone covers that protects smartphones from extreme shocks the company produced 63

QUESTION 9 Super Impact Protection Ltd produce shock absorbing phone covers that protects smartphones from extreme shocks the company produced 63

Accounting

QUESTION 9 Super Impact Protection Ltd produce shock absorbing phone covers that protects smartphones from extreme shocks the company produced 63.000 phone in the month of November 2019. The costs are listed below: Direct Materials 85,000 Direct labour Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing cost 132,500 65,000 92,000 374,500 Ultra-protect Company has offered to supply the phone covers to Super Impact Protection Company for $5 per unit. The chief accountant of Super impact Protection is considering the potential benefit of accepting this offer. Upon investigating its overhead costs, the chief accountant found that if Super Impact Protection buys the phone covers from Ultra-protect Company, it would eliminate $20,000 of total fixed costs, and could use the released production capacity to generate an additional income of $47,000 from producing a different product Required: From a financial perspective, should the phone covers be outsourced? Show full calculations. (10 marks) re Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Air 888 BO FS FO % 5 6 R T

Option 1

Low Cost Option
Download this past answer in few clicks

2.91 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE

Related Questions