{"id":47518,"date":"2022-04-01T03:42:55","date_gmt":"2022-04-01T03:42:55","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/acc-climate-control-inc-manufactures-a-variety-of-heating-and\/"},"modified":"2022-04-01T03:42:55","modified_gmt":"2022-04-01T03:42:55","slug":"acc-climate-control-inc-manufactures-a-variety-of-heating-and","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/acc-climate-control-inc-manufactures-a-variety-of-heating-and\/","title":{"rendered":"Acc &#8211; climate-control, inc., manufactures a variety of heating and"},"content":{"rendered":"<div>\n<p>Climate-Control, Inc., manufactures a variety of heating and air conditioning units.\u00a0 The company is currently manufacturing all of its own component parts.\u00a0 An outside supplier has offered to sell a theromostat to Climate-Control for $20 per unit.\u00a0 To evaluate this offer, Climate-Control, Inc., has gathered the following information relating to its own cost of producing the thermostat internally:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a015,000\u00a0\u00a0<br \/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Per\u00a0Units Per\u00a0\u00a0<br \/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Unit\u00a0Year\u00a0\u00a0<br \/>Direct materials\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$6 \u00a0$90,000 \u00a0\u00a0<br \/>\u00a0Direct labor\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08 \u00a0120,000 \u00a0\u00a0<br \/>\u00a0Variable manufacturing overhead\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01 \u00a015,000 \u00a0\u00a0<br \/>\u00a0Fixed manufacturing overhead, traceable ***\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a05 \u00a075,000 \u00a0\u00a0<br \/>\u00a0Fixed mfg. overhead, common, and allocated\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a010 \u00a0150,000 \u00a0\u00a0<br \/>\u00a0\u00a0Total cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$30 \u00a0$450,000 \u00a0300000\u00a0$150,000 <br \/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\u00a0***\u00a040% supervisory salaries; 60% depreciation of special equipment (no resale value).\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>Required:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>1.Assuming that the company has no alternative use for the facilities now being used to produce the thermostst, should the outside supplier&#8217;s offer be accepted?\u00a0<br \/>2.Suppose that if the thermostats were purchased, Climate-Control, Inc., could use the freed capacity to launch a new product.\u00a0 The segment margin of the new product would be $65,000 per year.\u00a0 Should Climate-Control, Inc., accept the offer to buy the thermostats from the outside supplier for $20 each?\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br \/>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Climate-Control, Inc., manufactures a variety of heating and air conditioning units.\u00a0 The company is currently manufacturing all of its own component parts.\u00a0 An outside supplier has offered to sell a theromostat to Climate-Control for $20 per unit.\u00a0 To evaluate this offer, Climate-Control, Inc., has gathered the following information relating to its own cost of producing [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-47518","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/47518","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=47518"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/47518\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=47518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=47518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=47518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}