Olympic Products Inc Manufactures And Distributes Barbecue Grills The Company Normal 2183228

Olympic Products Inc. manufactures and distributes barbecue grills. The company normally sells 1,500 of these grills each month for a price of $240 each. The material cost for a grill is $50 and the direct labor is $28. The variable overhead cost is $23 per grill, and the fixed overhead cost is $45,000 per month. A contract manufacturer has approached the company and offered to supply the grills ready to sell for $108 each. The company management believes that if it accepts this offer, Olympic Products will be able to lease unused factory space for $17,000 per month. Perform a make-versus-buy analysis.

Prof. Angela

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