Pawistik Corporation makes computer screens that are used in the assembly of laptops which Pawistik sells to
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Pawistik Corporation makes computer screens that are used in the assembly of laptops which Pawistik sells to the general public. The costs per screen are as follows:
Computer Accessories Inc. has offered to sell Pawistik 50,000 of the screens for \($45\) each. If Pawistik accepts this offer, the company will be able to eliminate \($200,000\) in fixed manufacturing overhead costs. What is the cost or benefit of purchasing from Computer Accessories?
a. \($50,000\) benefit
b. \($750,000\) cost
c. \($150,000\) cost
d. \($200,000\) benefit
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