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    Mr Baddington's Avatar
    Mr Baddington Posts: 1, Reputation: 1
    New Member

    Apr 28, 2019, 08:07 AM
    Carley company produces 2000 parts per year which are being used in the assembly of o
    carley company produces 2000 parts per year which are being used in the assembly of one of its products. The variable cost of manufacturing each part is $64 and the fixed manufacturing cost total $34 per unit for a total product cost of $100. The part can be purchased from an outside supplier at $80 per unit. If the part is purchased from the outside supplier two-thirds of the fixed manufacturing costs can be eliminated. Which cost are relevant to this decision? Why? What would be the annual impact on the company’s net operating income to be a result of buying the part from the outside supplier?
    ma0641's Avatar
    ma0641 Posts: 15,681, Reputation: 1012
    Uber Member

    Apr 28, 2019, 05:25 PM
    Homework? We don't do it for you. What have you figured out?

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