Ask Cost Accounting Expert

This company has just revieve a offer from a outside supplier to provide the ink cartridge for this company. at a price of 0.48 per dozen. Bronson inc is interested in this offer because its own production of cartridege is at at capacity. this company estimate that if that if thesupplier offer were accepted; the direct labor and variable manfacture overhead cost of the zippo pen line would reduce by 10 percent and the direct material cost would be reduce by 20 pecent. under present operation this company manufacture all of it own pen from start to finish. the zippo pen are sold thru wholesale at 4 dollar per box. each box contain one dozen pen. fixed manufacture overhead cost charge to the the zippo pen line total 50k per yr. the same equipment and facilties are used to produce serval pen line. the present cost of producing one dozen zippo 1. direct material=1.50 cents direct labor= 1.00 manufacture overhead=0.80 cents total cost = 3.30 cents question 1. should this company accept the outside supplier and why/2. what is the max price that this company should be willing to pay outside supllyier per dozen cartridge and why/ 3.Due to bankruptcy from other compant. Bronson inc expect to sell 150;000 boxes of zippo pen next year. as stated earlier this company has enough to only produce the cartridge 4 only 100,000 box of zippo pen annually.. By adding 30k in fix cost each yr this company could expand its production of cartiage to satisy the demand of zippo pen. the variable cost per unit to produce the additional cartiage should be purchase from the outside supplier and how many should be made by this company. 4. what factor should Bronson inc consider in determined whether it should be make or buy the ink cartiage ; give reason.

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M91040189
  • Price:- $40

Priced at Now at $40, Verified Solution

Have any Question?


Related Questions in Cost Accounting

Assessment taskselect two public limited companies listed

Assessment task Select two public limited companies listed on the Australian Securities Exchange (ASX) that are in the same industry. Go to the website of your selected companies. Then go to the Investor Relations sectio ...

Assignment1 based on your topic given by your lecturer

Assignment: 1. Based on your topic given by your Lecturer, select two research-based journal articles relating to your topic. The articles you choose must cover a contemporary issue that is relevant to your topic. The jo ...

The balanced scorecard can be described as a tool that

The Balanced Scorecard can be described as a tool that "translates an organisation's mission and strategy into a set of performance measures that provide the framework for implementing its strategy" (Horgren et al., 2014 ...

Assessment taskselect two public limited companies listed

Assessment task Select two public limited companies listed on the Australian Securities Exchange (ASX) that are in the same industry. Go to the website of your selected companies. Then go to the Investor Relations sectio ...

Assignment - the effect of customer service experience on

Assignment - The Effect of Customer Service Experience on Subsequent Purchase Decisions One of our core topics this term will be to examine how management decisions affect sales volume and, therefore, company profits. Tw ...

Research and write a paper on the topicthe ethics of

Research and write a paper on the Topic: The Ethics of manipulating budgets The paper should be approximately 3-4 double spaced written pages, plus your reference page (at least four references required) and any appendic ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As