Instruction
I had assigned this to 2 other people and the website messed up my instruction file with someone else's and I received a wrong paper twice and paid total of $35 I need this done in about 8 hour from now and really cannot pay more than $15 I appreciate your understanding. so instead if uploading the file I am just going to paste it here:
Please discuss the following case study: explain your approach to the problem, support your approach with references, and execute your approach. Provide an answer to the case study’s question with a recommendation.
Case Study:
Assume that a firm has prepared the following cost estimates for the manufacture of a sub assembly component based on an annual production of 8,000 units.
Direct materials $5 per unit and total $40000. Direct labor $4 per unit and total $32000. Variable factory overhead applied $4 per unit and total $32000. Fixed factory over head applied (150% of direct labor cost) $6 per unit and total $48000. Total Cost $19 and total $152000 . The supplier has offered to provide the subassembly at a price of $16 each. Two-thirds of fixed factory overhead, which represents executive salaries, rent, depreciation, and taxes, continue regardless of the decision. Should the company buy or make the product? Provide a solution and recommendation decision. Provide a narrative about the approach to the problem. provide supporting references.