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41. (5 points) Okoye Inc. manufactures machine parts for aircraft engines. A subcontractor has requested Okoye to provide 4,100 units of part PQ107 at
41. (5 points) Okoye Inc. manufactures machine parts for aircraft engines. A subcontractor has requested Okoye to provide 4,100 units of part PQ107 at a price of $450,000. If Okoye produces part PQ107, it will have a retooling and design cost of $16,700. Okoye's other in- house production costs for this part include: Direct materials Direct labor Variable overhead Cost per Unit $53 34 16 a. What are Okoye's total relevant costs for producing part PQ107? b. Should Okoye accept or reject the subcontractor's offer to make the part for $450,000? Show calculations to support why accept or reject the offer.
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