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050 points Quirch Inc manufactures machine parts for aircraft engines The CEO, Chucky Valters, was considering an offer from a subcontractor that would provide 2400
050 points Quirch Inc manufactures machine parts for aircraft engines The CEO, Chucky Valters, was considering an offer from a subcontractor that would provide 2400 units of product PO107 for Valters for a price of $150,000. If Quirch does not purchase these parts from the subcontractor it must produce them in house with the following unit costs Cost per Unit S31 Direct males Direct labor Variable overhead In addition to the above costs, if Quirch produces part PQ107 it would also have a retooling and design cost of $9.800 The relevant costs of producing 2.400 units of product PQ107 are $164 200 OS129,800 $150.000 149.000 O $14.300
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