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The Alliance For Global Education Operations And Supply Chain Management Assignment Help - The required volume


Question - Altertech Inc. manufactures a product which contains a circuit board. The company has always purchased this circuit board from a supplier for $32 each. Altertech recently upgraded its own manufacturing capabilities and now has enough excess capacity (including trained workers) to begin manufacturing the circuit board instead of buying it. The company prepared the following per unit cost projections of making the circuit board, assuming that overhead is allocated to the part at the normal predetermined overhead rate of 110% of direct labor cost. Direct materials $2 direct labor 20 Overhead (fixed and variable) 22 Total $44 The required volume of output to produce the circuit boards will not require any incremental fixed overhe ...Read More

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