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ACE produces cars for both American and Japanese car companies. It currently manufactures the transmissions that go into the cars. SOY Corp. has offered to

ACE produces cars for both American and Japanese car companies. It currently manufactures the transmissions that go into the cars. SOY Corp. has offered to provide transmissions to ACE for $400 each. ACE produces 5,000 cars per month and has the following costs for the manufacture of the transmissions: Direct materials $150 Direct labor 50 Variable overhead 100 Fixed overhead 150 Total Cost $450 If the transmissions are purchased from SOY, $300,000 of fixed overhead costs per month (supervisors

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