Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 09 Aug 2017 My Price 5.00

Gargoyle Corporation

4 Gargoyle Corporation manufactures 20,000 widgets each period. The widget is used as an input for producing several other products that Gargoyle manufactures. The full manufacturing costs for a batch of 100 widgets are as follows: Direct materials $ 540 Direct labor 400 Variable manufacturing overhead 400 Average fixed manufacturing overhead 700 Total $2,040 The fixed manufacturing overhead is comprised of depreciation expenses related to prior investments in facilities and equipment that are used in the manufacturing of the widgets. These assets have no other use than for the manufacturing of the widgets. An outside supplier has offered to sell Gargoyle the 20,000 widgets necessary to meet production needs this period for a lump-sum of $150,000. What should Gargoyle do if it wants to maximize its profit for the period?

Answers

Maurice Tutor
(5)
Status NEW Posted 09 Aug 2017 06:08 PM My Price 5.00

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