The managerial accountant at Sellers Manufacturing produces a product, Part Z that the company uses to make multiple products at its facility in Virginia. The managerial accountant reported to the operations manager that 12% of its fixed overhead costs assigned to Part Z will not continue if Sellers Manufacturing outsources the production of Product Z at $44 per unit to Manufacturing World. The managerial accountant reported that to produce 1,200 units of Product Z, Sellers Manufacturing incurs the following costs:
Should Sellers Manufacturing produce Part Z or outsource it to Manufacturing World?

Question

The managerial accountant at Sellers Manufacturing produces a product, Part Z that the company uses to make multiple products at its facility in Virginia. The managerial accountant reported to the operations manager that 12% of its fixed overhead costs assigned to Part Z will not continue if Sellers Manufacturing outsources the production of Product Z at $44 per unit to Manufacturing World. The managerial accountant reported that to produce 1,200 units of Product Z, Sellers Manufacturing incurs the following costs:
  Should Sellers Manufacturing produce Part Z or outsource it to Manufacturing World?

Quizplus · Accepted Answer

The Answer of The managerial accountant at Sellers Manufacturing produces a product, Part Z that the company uses to make multiple products at its facility in Virginia. The managerial accountant reported to the operations manager that 12% of its fixed overhead costs assigned to Part Z will not continue if Sellers Manufacturing outsources the production of Product Z at $44 per unit to Manufacturing World. The managerial accountant reported that to produce 1,200 units of Product Z, Sellers Manufacturing incurs the following costs:
  Should Sellers Manufacturing produce Part Z or outsource it to Manufacturing World?

The Managerial Accountant at Sellers Manufacturing Produces a Product, Part