Peluso company, a manufacturer of snowmobiles, is operating at 70% of plant capacity. peluso's plant manager is considering making the headlights now being purchased from an outside supplier for $11 each. the peluso plant has idle equipment that could be used to manufacture the headlights. the design engineer estimates that each headlight requires $4 of direct materials, $3 of direct labor, and $6.00 of manufacturing overhead. forty percent of the manufacturing overhead is a fixed cost that would be unaffected by this decision. a decision by peluso company to manufacture the headlights should result in a net gain (loss) for each headlight of:

Question

23-11-2017
Business

contestada

Peluso company, a manufacturer of snowmobiles, is operating at 70% of plant capacity. peluso's plant manager is considering making the headlights now being purchased from an outside supplier for $11 each. the peluso plant has idle equipment that could be used to manufacture the headlights. the design engineer estimates that each headlight requires $4 of direct materials, $3 of direct labor, and $6.00 of manufacturing overhead. forty percent of the manufacturing overhead is a fixed cost that would be unaffected by this decision. a decision by peluso company to manufacture the headlights should result in a net gain (loss) for each headlight of:

Respuesta :

Otras preguntas

Initial inputs of energy, water, fertilizer, and pesticides on high-yield crop varieties may initially have dramatic results. At some point however, even with a

What lessons does Santiago learn by working at the crystal shop? How does the crystal merchant’s explanation for not taking the pilgrimage to Mecca highlight th

The fitness instructor is concerned with pretest to posttest differences in percent body fat for subjects involved in water aerobics training class. The correct

The Federal Reserve System A) is an agency of the executive branch of the federal government. B) is basically an independent agency. C) has the status of a c

Describe each of the following species interactions and give an example of each: (a) interspecific competition (b) intraspecific competition (c) predation (d) t

When Rudyard missed the bus to school, he immediately thought to himself, "The teacher will never let me in late to the final exam. I’m doomed." Rudyard’s thoug

The energy available to consumers determined by subtracting the energy used by plants from the total energy transformed by the process of photosynthesis. Prima

You are an American with a lower socio-economic status. You are a racial minority, live in public housing, and did finish high school but work at a physically l

Suppose a report was released today that showed the Euro-Zone inflation rate is running above the European Central Bank's inflation rate target. This leads peop

Deer ticks can be carriers of either Lyme disease or human granulocytic ehrlichiosis (HGE). Based on a recent study, suppose that of all ticks in a certain loca

W0lf93 W0lf93 · Answer 1 · 2017-12-02T19:26:15+01:00

Net gain of $0.40 per headlight. Let's calculate how much it will cost Peluso to make each headlight. First, let's add the direct labor and materials costs $3 + $4 = $7 Now let's add the manufacturing overhead that would actually be affected by making head lights. Since 40% is unaffected, we need to multiply the overhead by 100% - 40% = 60% before attributing that cost to the headlights. So $6 * 0.60 = $3.60 And let's add that to the current cost of making the headlight $7 + $3.60 = $10.60 And finally, let's subtract that from the cost of the headlight if outsourced. $11 - $10.60 = $0.40 So the Peluso company will save $0.40 per headlight that they manufacture themselves.