Part IVSeymour Chemical Company makes a variety of cosmetic products one of which is a skin cream designed to reduce the signs of aging. Seymour produces a relatively small amount (14000 units) of the cream and is considering the purchase of the product from an outside supplier for $5.70 each. If Seymour purchases from the outside supplier it would continue to sell and distribute the cream under its own brand name. Seymour s accountant constructed the following profitability analysis.
Revenue (14000 units $14.0)$196000 Unit-level materials costs (14000 units $1.70)
(23800) Unit-level labor costs (14000 units $.60)
(8400) Unit-level overhead costs (14000 $.40)
(5600) Unit-level selling expenses (14000 $.20)
(2800) Contribution margin
155400 Skin cream production supervisor s salary
(57000) Allocated portion of facility-level costs
(13900) Product-level advertising cost
(46000) Contribution to companywide income$38500Required:a.Calculate the total avoidable costs.b-1.Calculate the total avoidable cost per unit.b-2.Should Seymour continue to make the product or buy it from the supplier?c-1.Suppose that Seymour is able to increase sales by 10000 units (sales will increase to 24000 units). Calculate the total avoidable costs.c-2.At this level of production should Seymour make or buy the cream?
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BENCHMARK – EFFECTS OF CHILDHOOD TRAUMA WORKSHEET
Academic Level University Subject Healthcare Type of Paper Other (Not listed) Paper Format APA Assessment Traits Benchmark Requires Lopeswrite Assessment Description Complete the “Effects of Childhood Trauma Worksheet” document attached. While APA format is not Read more…