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2 points Save Antwe Genent's Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1070 units are as

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2 points Save Antwe Genent's Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1070 units are as follows: Direct materiale 145.000 Direct labor Variable owerhead couts 33,500 Fixed overhead coats 21000 Total costs 3109,000 9500 It is estimated that 10% of the fixed overhead costs assigned to TE456 will no longer be incurred if the company purchases TE456 from the outside supplier. Gegent's Engine Company has the option of purchasing the part from an outside supplier at $92.75 per unit. # Genent's Engine Company accept the offer from the outside supplier, the monthly avoidable costs (costs that will no longer be incurred) total $111,100 590,100 $109,000 588,000

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