Business, 25.11.2021 15:20 crosales102

Lindon Company uses 5,000 units of Part X each year as a component in the assembly of one of its products. The company is presently producing Part X internally at a total cost of $80,000 as follows: Direct Materials$18,000 Direct Labor20,000 Variable Manufacturing Overhead 12,000 Fixed Manufacturing Overhead 30,000 Total Costs$80,000 An outside supplier has offered to provide Part X at a price of $13 per unit. If Lindon Company stops producing the part internally, one-third of the fixed manufacturing overhead would be eliminated. INSTRUCTIONS Prepare an analysis showing the annual advantage or disadvantage of accepting the outside supplier's offer. When complete, answer each of the following by selecting the correct match from the list provided. - What is the total outside purchase price for 5,000 units

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Lindon Company uses 5,000 units of Part X each year as a component in the assembly of one of its pro...

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