Solution-Should bradley make the ductwork or buy it

Should bradley make the ductwork or buy it prefabricated

Assignment Help Managerial Accounting

Reference no: EM132515850

For most construction projects, Bradley Heating and Cooling buys sheet metal and forms the metal into heating/cooling ducts as needed. The company estimates the costs of making and installing ductwork for the Kerry Park shopping mall to be as follows:

Materials $35,000

Labor to form ductwork 4,000

Labor to install ductwork 10,000

Miscellaneous variable costs 1,500

Fixed costs allocated based on labor hours 3,000

Total $53,500

The fixed costs relate to the company's building, equipment, and office staff. The company plans to bill the Kerry Park developer $68,000 for services. Bradley is currently behind schedule on other projects and is paying a late penalty of $1,200 per day. Walt Bradley, the owner of Bradley Heating and Cooling, is considering ordering prefabricated ductwork for the Kerry Park job. The prefabricated ductwork will cost $42,000 (including the cost of sheet metal). If Walt buys the prefabricated ductwork, he'll be able to reassign workers to another project and avoid five days of late fees.

Question 1: Should Bradley make the ductwork or buy it prefabricated?

Reference no: EM132515850

Questions Cloud

How much will you have in the end : Suppose you put off making investments for the first 5 years, and instead made deposits of $50 a month for 25 years into an account earning

Define the it security framework : Identify and write policies and procedures on how to manage IT and Network Security - Prepare a project report which should include the policies and procedures

Definitions for data mining : How do you describe the importance of data in analytics? Define data mining. Why are there many names and definitions for data mining?

What is simple random sampling : What's simple random sampling? Is it possible to sample data instances using a distribution different from the uniform distribution?

Should bradley make the ductwork or buy it prefabricated : Should Bradley make the ductwork or buy it prefabricated? Bradley Heating and Cooling buys sheet metal and forms the metal into heating

Wahat is the risk-free rate of return : If the expected return on the market is 12.5 percent, what is the risk-free rate of return, rRF?

Determine average annual dividend growth rate : Determine average annual dividend growth rate over the past 5 years. Using that growth? rate, what dividend would you expect the company to pay next? year?

How forms of metadata are valuable to an investigator : Define several forms of metadata that can be useful to an investigation. How are valuable to an investigator? The response must be typed.

Firm evaluating an expansion of its current business : You are a consultant to a firm evaluating an expansion of its current business. The cash-flow forecasts (in millions of dollars) for the project are as follows:

User Account

All Pages

Should bradley make the ductwork or buy it prefabricated

Reference no: EM132515850

Reference no: EM132515850

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT