# King City Specialty Bikes (KCSB) produces high-end bicycles. Costs to manufacture and market the bicycles at...

King City Specialty Bikes (KCSB) produces high-end bicycles. Costs to manufacture and market the bicycles at last year's volume level of 1,850 bicycles per month are shown in the following table: Variable manufacturing per unit Total fixed manufacturing Variable nonmanufacturing$58.00 per unit Total fixed nonmanufacturing$226.00 $249,750$277,500 KCSB expects to produce and sell 2,200 bicycles per month in the coming year. The bicycles sell for $650 each KCSB receives a proposal from an outside contractor who, for$165 per bicycle, will assemble 800 bicycles per month and ship them directly to KCSB's customers as orders are received from KCSB's sales force. KCSB would provide the materials for each bicycle, but the outside contractor would assemble, box, and ship the bicycles. The variable manufacturing costs would be reduced by 40% for the 800 bicycles assembled by the outside contractor, and variable nonmanufacturing costs for the 800 bicycles would be cut by 60% KCSB's marketing manager thinks that it could sell 90 specialty racing bicycles per month for $6,500 each, and its production manager thinks that it could use the idle resources to produce each of these bicycles for variable manufacturing costs of$5,300 per bicycle and variable nonmanufacturing costs of $350 per bicycle If KCSB accepts the proposal, it would be able to save 5% of fixed manufacturing costs; fixed nonmanufacturing costs would be unchanged REQUIRED [Note: Round unit cost computations to the nearest cent] What is the difference in KCSB's monthly costs between accepting the proposal and rejecting the proposal? (Note: If the costs of accepting the proposal are less than the costs of rejecting it, enter the difference as a positive number; if the accept costs are more than the reject costs, enter the difference as a negative number.) Submit AnrTries 0/10 ## Answers #### Similar Solved Questions 1 answer ##### Leaf shape and leaf pubescence affect energy balance due to their effect on (choose any/all that... Leaf shape and leaf pubescence affect energy balance due to their effect on (choose any/all that apply) A) radiant heat input B) Metabolic heat loss C) sensible heat exchange D) the leaf boundary layer E) stomatal conductance... 1 answer ##### A) Create an abstract class Student. The class contains fields for student Id number, name, and... a) Create an abstract class Student. The class contains fields for student Id number, name, and tuition. Includes a constructor that requires parameters for the ID number and name. Include get and set method for each field; setTuition() method is abstract. b) The Student class should throw an excep... 1 answer ##### What different resistances can be obtained by using two 2.0-Ω resistors and one 4.0-Ω resistor? You... What different resistances can be obtained by using two 2.0-Ω resistors and one 4.0-Ω resistor? You must use all three of them in each possible combination.... 1 answer ##### In a test of H_0: mu - 100 against H_a: mu < > 100, the sample... In a test of H_0: mu - 100 against H_a: mu < > 100, the sample data yielded the test statistic z--2.17. Find the p- value for the test. Here ">" stands for "not equal". O 0.015 O 0.485 0.03... 1 answer ##### Multiple Choice Question 145 Concord Consulting started the year with total assets of$58400 and total...
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