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Tidewater Community College Operations And Supply Chain Management Assignment Help - opportunity costs


Question - Make versus buy, activity-based costing, opportunity costs. The Weaver Company produces gas
grills. This year’s expected production is 20,000 units. Currently, Weaver makes the side burners for
its grills. Each grill includes two side burners. W eaver’s management accountant reports the following
costs for making the 40,000 burners:


Weaver has received an offer from an outside vendor to supply any number of burners Weaver
requires at $9.25 per burner. The following additional information is available:
a. Inspection, setup, and materials-handling costs vary with the number of batches in which the
burners are produced. Weaver produces burners in batch sizes of 1,000 units. Weaver will produce
the 40,000 units in 40 b ...Read More

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