RE: ::: vuaskari.com ::: MGT 402 is question ki samj ni aa rai some one help

Total Motors Produced                                                 = 35,000

Cost/Motor of Regal, Inc.:                         16.3

Direct materials	4.50
Direct labor	4.60
Variable factory overhead	3.75
Fixed factory overhead	3.45

Total Cost of production of Regal, Inc.                    = 570,500

                                                               

Cost/Motor of Outsider                             15.0

Total Cost of production of Outsider                       = 525,000

Extra cost born by Regal, Inc.                                      = 45,700

Extra cost per motor                                                       = 1.3

 

(Just a rough calculation; I am not sure about its authenticity)

 

Regads,

Nadeempomy

 

From: vuaskari_com@googlegroups.com [mailto:vuaskari_com@googlegroups.com] On Behalf Of anjum riaz
Sent: Tuesday, February 26, 2013 11:11 AM
To: attock-vu-group; VU Pakistan; vuaskari_com@googlegroups.com; vustudymania@googlegroups.com
Subject: ::: vuaskari.com ::: MGT 402 is question ki samj ni aa rai some one help

 

The Regal, Inc. makes 35,000 motors to be used in the production of its sewing machines. The cost per motor at this level of activity would be:

Particular	Rs.
Direct materials	4.50
Direct labor	4.60
Variable factory overhead	3.75
Fixed factory overhead	3.45

An outside supplier recently began producing a comparable motor for the sewing machine. The price to Regal for this motor is Rs. 15. If Regal decided not to make the motors, there would be no other use for the production facilities. Required: If Regal decides to continue making the motor, how much higher or lower would net income be than if the motors are purchased from the outside supplier?

--
I'm so lonely broken angel
I'm so lonely, listen to my heart

--
We say, "Be one as Pakistani Nation and grow up for Pakistan's Future". Wish you all the best. Join www.vuaskari.com,
To post to this group, send email to vuaskari_com@googlegroups.com
Visit these groups:
This (Main) Group:http://groups.google.com/group/vuaskari_com?hl=en?hl=en
MIT/MCS Group: http://groups.google.com/group/vu_askarimit?hl=en?hl=en
HRM Group: http://groups.google.com/group/askari_hrm?hl=en?hl=en
Banking Group: http://groups.google.com/group/askari_banking?hl=en?hl=en
Management: https://groups.google.com/group/vuaskari_mgt?hl=en
Marketing: https://groups.google.com/group/vuaskari_mkt?hl=en
MIS Group: http://groups.google.com/group/askari_mis?hl=en
---
You received this message because you are subscribed to the Google Groups ":::www.vuaskari.com :::" group.
To unsubscribe from this group and stop receiving emails from it, send an email to vuaskari_com+unsubscribe@googlegroups.com.
For more options, visit https://groups.google.com/groups/opt_out.