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Fowler Industries produces two bearings

Fowler Industries produces two bearings
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Price: $14.99
Availability: In Stock
Model: A
Average Rating: 5 out of 5 Stars!

Fowler Industries produces two bearings: C15 and C19. Data regarding these two bearings follow: C15 C19 Machine hours required per unit 2 2.5 Standard cost per unit: Direct materials $2.50 $4.00 Direct labor $5.00 $4.00 Manu overhead Variable $3.00 $2.50 Fixed $4.00 $5.00 $14.50 $15.50 The company requires 8,000 units of C15 and 8,000 units of C19. Recently, management decided to devote additional machine time to other product lines, outside company has offered to sell Fowler the bearings at prices of $13.50 for C15 and $12.50 for C19. Required: A. Compute the net benefit to the company of manufacturing (rather than purchasing) a unit of C15. Repeat the calculation for a unit of C19. C. Fowler lacks sufficient machine time to produce both the C15s and C19s needed. Which component (C15 or C19) should Fowler manufacture with the limited machine hours available? Why? Be sure to show all supporting computations

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