If Regis Company purchases the plugs but does not rent the unused facility, the company would...
Not what you're looking for?
Regis Company makes the plugs it uses in one of its products at a cost of 36 per unit. This cost includes 8 of fixed overhead. Regis needs 30,000 of these plugs annually, and Orlan Company has offered to sell them to Regis at 33 per unit. If Regis decides to purchase the plugs, 60,000 of the annual fixed overhead will be eliminated, and the company may be able to rent the facility previously used for manufacturing the plugs.
Reference: 13-7
If Regis Company purchases the plugs but does not rent the unused facility, the company would:
lose 3.00 per unit.
lose 6.00 per unit.
save 6.00 per unit.
save 3.00 per unit.
Purchase this Solution
Solution Summary
You will find the answer to this puzzling question inside...
Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.