Question
6. Granger Industries can produce 100 units of a necessary component part with the following costs: Direct Materials $20,000 Direct Labor 9,000 Variable Overhead
6. Granger Industries can produce 100 units of a necessary component part with the following costs: Direct Materials $20,000 Direct Labor 9,000 Variable Overhead 21,000 Fixed Overhead 8,000 If Granger Industries purchases the component externally, $2,000 of the fixed costs can be avoided. Below what external price for the 100 units would Granger choose to buy instead of make the units?
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Cost management a strategic approach
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
5th edition
978-0073526942
