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Texas A&M University-Commerce Operations And Supply Chain Management Assignment Help - Nantucket Nectars

Question - Assume that Nantucket Nectars reports the following costs to make 17.5 oz. bottles for its Juice Cocktails: Nantucket Nectars Company Cost of Making 17.5-Ounce Bottles Total Cost for Cost per 1,000,000 Bottles Bottle Direct materials $ 80,000 $.080 Direct labor 30,000 .030 Variable factory overhead 60,000 .060 Fixed factory overhead 85,000 .085 Total costs $255,000 $.255 Another manufacturer offers to sell Nantucket Nectars the bottles for $.25. The capacity now used to make bottles will become idle if the company purchases the bottles. Further, one supervisor with a salary of $60,000, a fixed cost, would be eliminated if the bottles were purchased. Prepare a schedule that compares the costs to make and buy the 17.5 oz. bottle ...Read More

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