Acc 561 managerial analysis ideal manufacturing company

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BYP17-2 Ideal Manufacturing Company of Sycamore, Illinois, has supported a research and development(R&D) department that has for many years been the sole contributor to the companysnew farm machinery products. The R&D activity is an overhead cost center that provides servicesonly to in-house manufacturing departments (four different product lines), all of which produceagricultural/farm/ranch related machinery products.The department has never sold its services outside, but because of its long history of success,larger manufacturers of agricultural products have approached Ideal to hire its R&D departmentfor special projects. Because the costs of operating the R&D department have been spiraling uncontrollably,Ideals management is considering entertaining...

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