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Cincinnati Flow Technology
Outsource (Buy)
0 (pumps)
$- ($ per unit)
$- ($ annually)
Insource (Make)
0 (pumps)
$- ($ per unit)
$- ($ annually)
Cost in making 10,000 pumps
Components (outside purchase).......
$Assembly labor
$Manufacturing overhead
$General / Adminstrative overhead
$Fixed overhead.....50%=
50%
$Variable overhead...100%=
100%
$Manufacturing overhead.....150%= $150%
Total costs to be avoided by purchasing.....=
$Total costs of purchasing (10,000 pumps x $102 per unit)..= $Total annual net saving=
$-
Type your response to the question here:
References:
Cincinnati Flow Technology
Outsource (Buy)
0 (pumps)
$- ($ per unit)
$- ($ annually)
Insource (Make)
0 (pumps)
$- ($ per unit)
$- ($ annually)
Cost in making 10,000 pumps
Components (outside purchase).......
$Assembly labor
$Manufacturing overhead
$General / Adminstrative overhead
$Fixed overhead.....50%=
50%
$Variable overhead...100%=
100%
$Manufacturing overhead.....150%= $150%
Total costs to be avoided by purchasing.....=
$Total costs of purchasing (10,000 pumps x $102 per unit)..= $Total annual net saving=
$-
Type your response to the question here:
References:
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