To start the exam, please angle your computer webcam down to…

To start the exam, please angle your computer webcam down to show your scratch paper area, then put your computer screen back up like normal and hold up both sides of your note card up to the webcam. ***For the rest of the exam, your computer webcam should be pointed towards you just like it normally is when you are working on a computer screen.***

Use this information for the next three questions: ABC Corpo…

Use this information for the next three questions: ABC Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 93 Units in beginning inventory   0 Units produced   5,400 Units sold   5,200 Units in ending inventory   200 Variable costs per unit:     Direct materials $ 24 Direct labor $ 27 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 10 Fixed costs:     Fixed manufacturing overhead $ 108,000 Fixed selling and administrative expense $ 36,400  

Vance Refrigeration makes 50,000 units per year of a part it…

Vance Refrigeration makes 50,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct materials $12.00 Direct labor $10.10 Variable manufacturing overhead $2.00 Fixed manufacturing overhead $14.10 Unit product cost $38.20   An outside supplier has offered to sell the company all of these parts it needs for $37.30 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $310,000 per year. If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $9.70 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company’s remaining products. What is the financial advantage (disadvantage) of buying the part rather than making it?