Reuben’s Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: Reuben's Deli cost data Costs...



Reuben’s Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are:


Reuben's Deli cost data




























CostsAmountsIncrements
Materials$0.24per roll
Labor0.40per roll
Variable overhead0.16per roll
Fixed overhead0.20per roll






C) A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Reuben accepts the offer, what will the effect on profit be?


D) A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. Should Reuben buy or make the rolls? (Buy the rolls or Make the rolls)


E) A potential supplier has offered to sell Reuben the rolls for $0.98 each. If the rolls are purchased, 26% of the fixed overhead could be avoided. If Reuben accepts the offer, what will the effect on profit be? Do not round until the final calculation - then round to the nearest penny, two decimal places. If the effect is negative, use a dash - not parentheses ( ).





Jun 09, 2022
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