Deployed for the production of other compressor

Reference no: EM13256958

Make or buy, relevant costs, opportunity cost. Kentucky Motors has manufactured compressor parts at its plant in Pitcairn, Indiana , for the past 18 years . An outside suppliers, Superior Compressor Company, has offered to supply compressor model A238 are as follows:

Direct materials $80
Direct labor 60
Unit-related support 26
Batch-related support 22
Product-sustaining support 8
Facility-sustaining support 17
Total costs $213

a. Should Superior Compressor's offer be accepted if the plant is presently operating below capacity?

b. What is the maximum acceptable purchase price if the plant facilities are fully utilized a present and and if any additional available capacity can be deployed for the production of other compressor?

Reference no: EM13256958

Questions Cloud

Draw the influence diagram-visit art exhibition : While she was visiting a three day art exhibition in Beirut, an art dealer found the famous painting The Laughing Sunplant. The dealer is confident that she can sell this painting in her gallery in Doha at a price not less than 500,000 QR.

Find the value of peak amplitude and the type of modulation : A constellation diagram has two points located at (3,0) and (-3,0) on the I(in-phase)-Q(quadrature phase) plane. Find the value of peak amplitude and the type of modulation this diagram represents.

Accounting cycle-accounting procedure : What is accounting cycle? What is accounting procedure? What are the books of maintenance?

Explain generated from t-butanol in the presence of h2so4 : Not all Friedel-Crafts reacts require a strong Lewis acid catalysts to generate the electrophile for the substitution reaction. Show, using curved arrows, how the electrophile is generated from t-butanol in the presence of H2SO4

Deployed for the production of other compressor : What is the maximum acceptable purchase price if the plant facilities are fully utilized a present and and if any additional available capacity can be deployed for the production of other compressor?

How much will be in the account at the end of 10 years : A retirement account has $40,000 in it and earns 12% interest per year compounded monthly. At the end of every month for the next 12 years you will deposit $200 into this account. How much will be in the account at the end of 10 years? (Round to t..

The goals for healthy people 2020 : It is important to promote the professional role of the nurse to provide health promotion and disease preventive care.

What is the amplitude of the magnetic field : An electromagnetic wave with frequency 56.0 Hz travels in an insulating magnetic material that has dielectric constant 3.72, What is the amplitude of the magnetic field?

Why is working capital management important to a company : Why is working capital management important to a company? Are there particular industries where managing working capital is more important?

User Account

All Pages