Quick Company has been purchasing a component,Part Q,for $20 a unit.Quick is currently operating at 70% of capacity and no significant increase in production is anticipated in the near future.The cost of manufacturing a unit of Part Q,determined by absorption costing methods,is estimated as follows:

Prepare a differential analysis report,dated March 12 of the current year,on the decision to make or buy Part Q.

Question

Quick Company has been purchasing a component,Part Q,for $20 a unit.Quick is currently operating at 70% of capacity and no significant increase in production is anticipated in the near future.The cost of manufacturing a unit of Part Q,determined by absorption costing methods,is estimated as follows:
  
Prepare a differential analysis report,dated March 12 of the current year,on the decision to make or buy Part Q.

Quizplus · Accepted Answer

The Answer of Quick Company has been purchasing a component,Part Q,for $20 a unit.Quick is currently operating at 70% of capacity and no significant increase in production is anticipated in the near future.The cost of manufacturing a unit of Part Q,determined by absorption costing methods,is estimated as follows:
  
Prepare a differential analysis report,dated March 12 of the current year,on the decision to make or buy Part Q.

Quick Company Has Been Purchasing a Component,Part Q,for $20 a Unit.Quick