Fluty Corporation Manufactures a Product That Has Two Parts,A and B.It

question 125

Essay

Fluty Corporation manufactures a product that has two parts,A and B.It is currently considering two alternative proposals related to these parts.
The first proposal is for buying Part A.This would free up some of the plant space for the manufacture of more of Part B and assembly of the final product.The product vice president believes the additional production of the final product can be sold at the current market price.No other changes in manufacturing would be needed.
The second proposal is for buying new equipment for the production of Part B.The new equipment requires fewer workers and uses less power to operate.The old equipment has a net disposal value of zero.
Required:
Tell whether the following items are relevant or irrelevant for each proposal.Treat each proposal independently.
a. Total variable manufacturing overhead, Part A
b. Total variable manufacturing overhead, Part B
c. Cost of old equipment for manufacturing Part B
d. Cost of new equipment for manufacturing Part B
e. Total variable selling and administrative costs
f.Sales revenue of the product
g. Total variable costs of assembling final products
h. Total direct manufacturing materials, Part $A$ Total
i.direct manufacturing materials, Part B Total direct
j.manufacturing labor, Part A
k. Total direct manufacturing labor, Part B

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Definitions:

Modern Workplace

The contemporary environment for work activities, characterized by technological integration, diversity, and adaptive organizational structures.

Bureaucratically Organized

Characterized by a formal and rigid structure of organization, often involving clear hierarchies, division of labor, and adherence to fixed rules and procedures.

Dehumanize

The process of depriving a person or group of positive human qualities, often to justify maltreatment or indifference.

Networks

Networks denote a group or system of interconnected people or things, often used to describe social structures, communication channels, or technological connections.