The Channel Company manufactures television remotes for new flat screen televisions.The Brighton Manufacturing Company offered to sell Channel Company 260,000 units to program the remotes next year at $54 per unit.The managerial accountant reported the following expected costs:

Required:
Compute the expected cost per unit in each category to produce 260,000 units next year and the total expected cost per unit.Does the manager at the Channel Company have enough information to accept or decline the offer from the manager at Brighton Manufacturing Company? Why or why not?

Question

The Channel Company manufactures television remotes for new flat screen televisions.The Brighton Manufacturing Company offered to sell Channel Company 260,000 units to program the remotes next year at $54 per unit.The managerial accountant reported the following expected costs:
  
Required:
Compute the expected cost per unit in each category to produce 260,000 units next year and the total expected cost per unit.Does the manager at the Channel Company have enough information to accept or decline the offer from the manager at Brighton Manufacturing Company? Why or why not?

Quizplus · Accepted Answer

The Answer of The Channel Company manufactures television remotes for new flat screen televisions.The Brighton Manufacturing Company offered to sell Channel Company 260,000 units to program the remotes next year at $54 per unit.The managerial accountant reported the following expected costs:
  
Required:
Compute the expected cost per unit in each category to produce 260,000 units next year and the total expected cost per unit.Does the manager at the Channel Company have enough information to accept or decline the offer from the manager at Brighton Manufacturing Company? Why or why not?

The Channel Company Manufactures Television Remotes for New Flat Screen