Acc – climate-control, inc., manufactures a variety of heating and

Climate-Control, Inc., manufactures a variety of heating and air conditioning units.  The company is currently manufacturing all of its own component parts.  An outside supplier has offered to sell a theromostat to Climate-Control for $20 per unit.  To evaluate this offer, Climate-Control, Inc., has gathered the following information relating to its own cost of producing the thermostat internally:            
         Per Units Per  
         Unit Year  
Direct materials        $6  $90,000   
 Direct labor        8  120,000   
 Variable manufacturing overhead        1  15,000   
 Fixed manufacturing overhead, traceable ***        5  75,000   
 Fixed mfg. overhead, common, and allocated        10  150,000   
  Total cost       $30  $450,000  300000 $150,000
 *** 40% supervisory salaries; 60% depreciation of special equipment (no resale value).          
1.Assuming that the company has no alternative use for the facilities now being used to produce the thermostst, should the outside supplier’s offer be accepted? 
2.Suppose that if the thermostats were purchased, Climate-Control, Inc., could use the freed capacity to launch a new product.  The segment margin of the new product would be $65,000 per year.  Should Climate-Control, Inc., accept the offer to buy the thermostats from the outside supplier for $20 each?          

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10