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Category > Business & Finance Posted 02 Aug 2017 My Price 7.00

serious Safety Products currently outsources an electrical

serious Safety Products currently outsources an electrical switch that is a component in its sprinkler systems. The switches are purchased for $20 each. The company is considering making the switches internally and has conducted a study to determine the costs involved. The costs below are projected annual production costs:

Unit level material cost:$3
unit level labor cost:2
unit level overhead: 1
batch level cost(5000 units per batch):5000
product level supervisory salaries:37,500
allocated facility level costs:20,000

Assume that the company needs 10,000 of the switches, which would be produced in two batches. Assume also that the company will still be operating within the relevant range. If Serious Safety decides to make the parts under these conditions, the total relevant costs will be: A) $127,500 B) $102,500 C) $107,500 D) $122,500

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Status NEW Posted 02 Aug 2017 06:08 PM My Price 7.00

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