1 answer

Winston Company makes decorative wedding cakes. The company is considering buying the cakes rather than baking​...

Question:

Winston Company makes decorative wedding cakes. The company is considering buying the cakes rather than baking​ them, which will allow it to concentrate on decorating. The company averages

100 wedding cakes per year and incurs the following costs from baking wedding​ cakes: Please see pictures below Thank you

Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Winston expects to retain the equip

Data Table - X Direct materials 625 775 Direct labor Variable manufacturing overhead 300 1,050 Fixed manufacturing overhead T

Winston y continue to make the cakes. Outsourcing will 12. If Winston decides to buy the cakes, what are some qualitative fac

Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Winston expects to retain the equipment. Winston can buy the cakes for $23. Winston Company makes decorative wedding cakes. The company is considering buying the cakes rather than baking them, which will allow it to concentrate on decorating. The company averages 100 wedding cakes per year and incurs the following costs from baking wedding cakes (Click the icon to view the costs.) 11. Should Winston make the cakes or buy them? Why? 12. If Winston decides to buy the cakes, what are some qualitative factors that Winston should also consider? 11. Should Winston make the cakes or buy them? Why? (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the cakes in-house.) Make Difference Outsource cakes Cake costs cakes (make-outsource) Variable costs: Direct materials Direct labor Variable manufacturing overhead Enter any number in the edit fields and then continue to the next question.
Data Table - X Direct materials 625 775 Direct labor Variable manufacturing overhead 300 1,050 Fixed manufacturing overhead Total manufacturing cost 2,750 100 Number of cakes $ Cost per cake Print Done
Winston y continue to make the cakes. Outsourcing will 12. If Winston decides to buy the cakes, what are some qualitative factors that Winston should also consider? O A. Qualitative factors include quality and on-time delivery O B . Qualitative factors include contribution margins of the various products produced. O C. Qualitative factors include separating fixed and variable costs. OD. Qualitative factors include considering sunk costs and manager's opinions.

Answers

Relevant Cost of making cakes in house:
Direct Materials 625
Direct Labour 775
Variable Manufacturing Overhead 300
Total Relevant Cost of making the cakes 1700
Per unit cost of making 17
Per unit Cost of Purchasing the cake 23
Total Cost for 100 Units 2300
Net Loss of Purchasing from Outside 600

Thus winston should continue making the cakes. Outsourcing will result in reduction of operating income by $ 600

If winston decides to buy the cakes, he should consider Qualitative factors such as Quality of cake & its on time delivery.

.

Similar Solved Questions

1 answer
OH , Hz。 I02 5, PREDICT HE eODueT D) ARE POSSLE ci 2 CONVER TED TO A CARBOx Yuc AcID VIA. .. E.) NONE OF THESE OH , Hz。 I02 5, PREDICT HE eODueT D) ARE POSSLE ci 2 CONVER TED TO A CARBOx Y...
OH , Hz。 I02 5, PREDICT HE eODueT D) ARE POSSLE ci 2 CONVER TED TO A CARBOx Yuc AcID VIA. .. E.) NONE OF THESE OH , Hz。 I02 5, PREDICT HE eODueT D) ARE POSSLE ci 2 CONVER TED TO A CARBOx Yuc AcID VIA. .. E.) NONE OF THESE...
1 answer
At the most recent financial year end, the accounting records of Top Ltd show the following...
At the most recent financial year end, the accounting records of Top Ltd show the following information, which include all income and expenses: Salaries Payable                       &n...
1 answer
4 In the Departures sheet, in cell A1, create a Web query to the departures table on this Web pag...
4 In the Departures sheet, in cell A1, create a Web query to the departures table on this Web page: http://media.pearsoncmg.com/ph/bp/bp_myitlab/departure_schedule_files/departure_schedule.htm. Maintain full HTML formatting before importing the table....
1 answer
How do you use laws of exponents to simplify #2^4 * 2^3 * 2^5#?
How do you use laws of exponents to simplify #2^4 * 2^3 * 2^5#?...
1 answer
A molecule which has absorbed a photon of energy in the visible range could move from...
A molecule which has absorbed a photon of energy in the visible range could move from the excited electronic state (S1) to a highly excited vibrational level of the ground state (So) with the same energy. What is this process called? O a. fluorescence O b.internal conversion O C. vibrational relaxat...
1 answer
Does the intensity of a laser affect the amount of current that flows through a photo...
Does the intensity of a laser affect the amount of current that flows through a photo tube? Does the intensity of a laser affect the voltage across a photo tube? I'm working on a lab that has a video where you can adjust the wavelength and see the subsequent change in current or voltage measured...
1 answer
8) Find the molar entropy change when H20 (1) at 1.00 atm and 300 K is...
8) Find the molar entropy change when H20 (1) at 1.00 atm and 300 K is changed to H2O (g) at 1.00 atm and 500 K. The enthalpy of vaporization of H2O is 40.66 kJ mol"! Cp [H2O(1)]=[12.16-1.943 x 10-2T +3.042 x 10-ST?]R Cpm[H,0(8)]=[3.633–1.195 x 10-T +1.34 x 10-?T?]R...
1 answer
Pandora Media plans to issue original issue discount (OID) bonds with a 20-year maturity, $1,000 par...
Pandora Media plans to issue original issue discount (OID) bonds with a 20-year maturity, $1,000 par value, and initial yield to maturity of 8%. Since these bonds are issued below par, the total yield will come from both annual coupon payments and appreciation. If the bonds are offered at a discount...
1 answer
Computer Securities
1. Most modern TCP implementations use pseudo-random number generators(PRNG) to determine starting sequence numbers for TCP sessions. With such generators, it isdifficult to compute the ith number generated, given only the ( i - 1 )th number generated. Explain what network security risks are created...
1 answer
(1 point) If F is a function defined by F(y) = 3y2 - 1. a. Find...
(1 point) If F is a function defined by F(y) = 3y2 - 1. a. Find F(0) -1 b. Solve F(y) = 0. The answer should be in the form y-23, and not simply give the numerical value of the solution, like 23. If there are two solutions, use the word or, as in y-23 or y=12. If you need to use the square root sign...
1 answer
5) On October 1, 2019, you purchase a $13,000 T-note that matures on November 15, 2031...
5) On October 1, 2019, you purchase a $13,000 T-note that matures on November 15, 2031 (settlement occurs two days after purchase, so you receive actual ownership of the bond on October 3, 2019). The coupon rate on the T-note is 5.875 percent and the current price quoted on the bond is 105.625 perce...
1 answer
CALCULATOR FULL SCREEN PRINTER VERSION NEXT Question 9 The following information is available for Grouper Corporation...
CALCULATOR FULL SCREEN PRINTER VERSION NEXT Question 9 The following information is available for Grouper Corporation for 2017 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $110,000. This difference will reverse in equal amounts of $27,500 over ...
2 answers
Operation management
a computer has three modules that must work for the computer to work properly. Two modules .97 and one .99.=.97x.97x.99=0.9315. If an identical backup is installed andwe assume the new computer will function if the other fails how do I determine the resulting reliability?...
1 answer
Consider the following: The community health nurses are reviewing the status of current national health plans...
Consider the following: The community health nurses are reviewing the status of current national health plans providing health promotion and disease prevention at the population level. The nurses are trying to identify ways to implement changes in their community that could lead to the potential to ...
1 answer
He Foundational 15 [LO8-2, LO8-3, LO8-4, LO8-5, LO8-7, LO8-9, LO8-10] [The following information applies to the...
he Foundational 15 [LO8-2, LO8-3, LO8-4, LO8-5, LO8-7, LO8-9, LO8-10] [The following information applies to the questions displayed below.] Morganton Company makes one product and it provided the following information to help prepare the master budget: The budgeted selling price per unit is $65. Bu...
1 answer
# 3. Find the P=0.95 confidence interval for the proportion of # 'yes' votes in the...
# 3. Find the P=0.95 confidence interval for the proportion of # 'yes' votes in the population if a sample of 1000 voters had # 435 'yes' votes. Use the exact binomial test....