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nour77
May 11, 2011, 10:47 AM
Happy Metal Company is considering the elimination of its Packaging Department. Management has received an offer from outside firm to supply all Happy's Packaging needs. To help in making the decision, Happy's president has asked the controller for an analysis of the cost of running Happy's Packaging Department. Included in that analysis is $15,200 of rent, which represents the Packaging's Department allocation of the rent on Happy's factory Building. If the Packaging Department is eliminated, the space it used will be converted to storage space. Currently Happy rents storage space in nearby for $18,000 per year. The warehouse rental would no longer necessary if Packaging Department were eliminated.
Required:
1- Discuss each of the figures given in the case with regard to its relevance in department closing decision.
2- What type of costs is the $18,000 warehouse rental, from the viewpoint of the costs of the Packaging Department?

Just Looking
May 11, 2011, 02:21 PM
Please read this announcement.

Announcement: (https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html)

If you'd like to post your answer, we can check it and give you something to think about if needed. We won't do the homework though. Thanks.