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- November 29, 2020 at 3:35 pm #597021
Please, can someone help solve this.
Josh Chemic Company Limited (Josh Chemic) manufactures a wide variety of detergents for use in hospitals. The operations manager of Josh Chemic has recently been approached by a new manufacturer based in a newly industrialized country who has offered to produce three of the detergents at their factory. The following cost and price information has been provided.
Detergent Aromatic Enzyme PresoakProduction (units)20,000 40,000 80,000
GH¢ GH¢ GH¢Direct mat.cost, per unit 6.80 7.00 6.40 Direct labor cost,per unit 7.60 7.80 6.80 Direct expense, per unit 6.40 6.60 6.20 Fixed cost per unit. 6.80 7.00 6.40
Selling price each 25.00 30.00 12.00 Imported price. 16.75 25.20 12.00All fixed costs are directly attributable fixed costs.
Required
a) Calculate i. the profits Josh Chemic will make by producing each of the detergents in-house.
ii. the profits Josh Chemic will make by purchasing the detergents from the overseas producer.
iii. What saving (increased cost) per unit would be made/(incurred) if the detergents were purchased from the overseas producer?
b) Advice Josh Chemic whether the detergents should be produced in-house or outsourced to the overseas producer.November 28, 2020 at 6:08 pm #596947Hello, please help solve this question for me.
Josh Chemic Company Limited (Josh Chemic) manufactures a wide variety of detergents for use in hospitals. DELETED
November 28, 2020 at 5:55 pm #596941Please, can someone help me solve this question.
Rothko Ltd produces a single product for distribution to wholesalers. DELETED
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