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Regis Company makes the plugs it uses in one of its products

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Regis Company makes the plugs it uses in one of its products at a cost of 36 per unit. This cost includes 8 of fixed overhead. Regis needs 30,000 of these plugs annually, and Orlan Company has offered to sell them to Regis at 33 per unit. If Regis decides to purchase the plugs, 60,000 of the annual fixed overhead will be eliminated, and the company may be able to rent the facility previously used for manufacturing the plugs.;Reference: 13-7;If Regis Company purchases the plugs but does not rent the unused facility, the company would;lose 3.00 per unit.;lose 6.00 per unit.;save 6.00 per unit.;save 3.00 per unit

 

Paper#27764 | Written in 18-Jul-2015

Price : $32
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