Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Management Expert

Curtis Corporation is beginning to manufacture Mighty Mint, a new mouthwash in a spray container. The product will be sold to wholesalers and large drugstore chains in packages of 30 containers for $20 per package. Management allocates $225,000 of fixed manufacturing overhead costs to Mighty Mint. The manufacturing cost per package of 30 containers for expected production of 100,000 packages is as follows:
Direct Material $7.50
Direct Labor $4.00
Overhead (fixed and variable) $3.50
Total $15.00

The company has contacted a number of package suppliers to determine whether it is better to buy or manufacture the spray containers. The lowest quote for the containers is $1.85 per 30 units. It is estimated that purchasing the containers from a supplier will save 10 percent of direct materials, 20 percent of direct labor, and 15 percent of variable overhead. Curtis's manufacturing space is highly constrained. By purchasing the spray containers, the company will not have to lease additional manufacturing space, which is estimated to cost $17,000 per year. If the containers are purchased, one supervisory position can be eliminated. Salary plus benefits for this position are $72,000 per year.

REQUIRED

Should Curtis make or buy the containers? What is the incremental cost (benefit) of buying the containers as opposed to making them?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M928592

Have any Question? 


Related Questions in Business Management

A work breakdown structure wbs and gantt chart developed as

A Work Breakdown Structure (WBS) and Gantt chart, developed as an MS Project file, showing discrete work tasks, grouped hierarchically in a way that helps to organize and define the total work scope of the project for te ...

1 what are some methods doctors have used to try and

1. What are some methods doctors have used to try and control acupuncture? What factors have helped or hindered them in this attempt? Your response should be at least 75 words in length. 2. Describe the difference that e ...

The congressional budget office estimates that the us

The Congressional Budget Office estimates that the U.S. budget deficit for 2016 will be $587 billion. The US debt is approximately $19.9 trillion. The estimated GDP for 2016 is about $18.7 trillion, and net interest paym ...

Describe the importance of information security for an

Describe the importance of information security for an organization, supporting with evidence. How could a lack of security affect not only consumers,but a company as well? Summarize two key information security practice ...

Design projectplease submit your completed design project

Design Project Please submit your completed Design Project. As you recall this project has four parts: 1. You will need to completely re-design the IBM logo. This is your chance to be creative. Use Word, PowerPoint, or a ...

Find onenbspscholarly or od-professional resourcenbspthat

Find one  scholarly or OD-professional resource  that discusses Action Research. Present a brief summary highlighting the key points of the article. The article should have been published within the last 10 years. Your s ...

Prove that in a symmetric sealed-bid auction with

Prove that in a symmetric sealed-bid auction with independent private values the random variable Y = max{V 2 , V 3 ,...,V n } is a continuous random variable and its density function f Y  is a positive function.

Discussionsforbes articleforbes articleread the forbes

DISCUSSIONS Forbes ArticleForbes Article Read the Forbes article:   Every Leader Must be a Change Agent or Face Extinction . Given that change is interwoven in organizations today, a leader must be prepared for change in ...

Analyze the manner in which a cirt plan fits into the

Analyze the manner in which a CIRT plan fits into the overall risk management approach of an organization and how it supports other risk management plans.

Managementhttpextmediakaplanedubusinessab140ab1401402au9assi

Management http://extmedia.kaplan.edu/business/AB140/AB140_1402A/U9Assignment/intro.html Sandwich Blitz, Inc. has a great problem...an increase in the number of customers! Employees have been consistently reporting that ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen