Solution-What is dollar cost advantage per unit of decision

What is dollar cost advantage per unit of decision

Assignment Help Managerial Accounting

Reference no: EM132971457

Fizzy Foam Corporation makes 1,000,000 units of its canned party foam. It currently makes the nozzle for the cans. The costs to produce one nozzle are: direct materials $.22; direct labor $.08; variable manufacturing overhead $.15; and fixed manufacturing overhead $.17. An outside supplier, Nancy's Nozzle's, has offered to sell Fizzy Foam all of the nozzles it requires for $.56 each. If Fizzy Foam decided to discontinue making the nozzles and instead buys them from Nancy's Nozzles, 30% of the fixed manufacturing overhead costs could be avoided.

Problem 1: Should Fizzy continue to make the nozzles (answer yes or no)?

Problem 2: What is the dollar cost advantage per unit of your decision?

Reference no: EM132971457

Questions Cloud

What was the adjusted end of the year value of cost of goods : What was the adjusted end of the year value of Cost of Goods Sold (prior to closing of the income statement)? Pauline purchased raw materials for $98,000.

What is the breakeven point in units for sports maniac sport : Sports Maniac sells the set for $35. The store pays $7 for the glove and $2 for the ball. Fixed costs are $8,320. What is the breakeven point in units?

Influencing the capital one financial company : Discuss the main drivers or factors influencing the 'Capital One' financial company to consider data disposition as an important component in their overall dat

Conduct a marketing assessment : -How can the information be used to assess population health needs, conduct a marketing assessment, evaluate health care outcomes, make predictions, and improve

What is dollar cost advantage per unit of decision : Nancy's Nozzle's, has offered to sell Fizzy Foam all of the nozzles it requires for $.56 each. What is the dollar cost advantage per unit of your decision?

Discuss several ways that reasoning by analogy is useful : How are blind and double-blind studies used to guard against bias?

How do managers differ from nonmanagerial employees : How do managers differ from nonmanagerial employees? Is your course instructor a manager? Discuss in terms of managerial functions, managerial roles, and skills

Should collegiate collections sell the lofts in unfinished : College Collections, Inc., should Collegiate Collections sell the lofts in unfinished form or process them further prior to selling? (enter yes or no)

Differentiate between ddl and dml languages : 1. Discuss and elaborate with an example the roles of database management system and how it affects the business operations. Choose an organization from telecom

User Account

All Pages

What is dollar cost advantage per unit of decision

Reference no: EM132971457

Reference no: EM132971457

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