Question 1 (2 points) cost to prepare the unhe. íblon: Martinsvile Elemenary Sch

Question

Question 1 (2 points) cost to prepare the unhe. íblon: Martinsvile Elemenary School provides hnhes for it 600 students. In a typical year, the school serves 42.000 lunches, Variable overhead Cafeteria werkers salaries Fixed overhead Kitchen equipment rental h's Edible has offered to provide wches or so.40 per lunch 0.05 per lunch 48,000 per year 12,000 per year 6,000 per year svie studentsfu, $2.1 Mart perlu h. "Martins ileac epts the oner theyca ehmrate the eeteramen dwilne nied overhead wil also decrease by 10% what decision should Martinsvile make? OA) Reject the supplier's offer. It would increase costs by 9,100 O 8) Accept the supplier's offler. It would reduce costs by 9,100 O C) Reject the supplier's offer. It would increase costs by $4,100 100. D) Accept the suppliers omer. It would reduce costs by

Explanation / Answer

Differential analysis Make Buy Effect on Net income Food 16800 0 16800 Variable OH 2100 0 2100 Cafetria worker salaries 48000 0 48000 Fixed overheds 12000 10800 1200 Kitchen equipment rental 16000 0 16000 Purchase cost 0 88200 -88200 Total cost 94900 99000 -4100 Answer is C. Reject the supplier offer as it would increase in cost by $ 4100.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.