12 Feb Ol’ Salt Enterprises produces 1,000 sailboats per
Ol’ Salt Enterprises produces 1,000 sailboats per year. Although the company currently buys sails for the sailboats (one set of sails per boat), it is considering making sails in some space that it does not currently use. The company purchases each set of sails for $300. It could make the sails for variable costs of $250 per set, plus it would allocate $200,000 of fixed costs per year to the sail-making operation. However, this $200,000 is not a differential cost of making sails; it is part of the costs the company already incurs that it would allocate away from sailboat manufacture to sail making.a. Prepare a differential analysis to show whether Ol’ Salt Enterprises should make or buy the sails. What should you recommend to management? Explain why the $200,000 fixed costs allocated to sail making is or is not relevant to the decision.b. If Ol’ Salt buys the sails, then it would have unused factory space. Suppose Ol’ Salt received an opportunity to rent out this unused factory space for $80,000 per year.Would that affect your recommendation in part a.?
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.