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Aitken Corp currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce are: (Per Unit) Direct materials-$15 Direct labor-$10
Aitken Corp currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce are: (Per Unit) Direct materials-$15 Direct labor-$10 Variable manufacturing overhead-$15 Fixed manufacturing overhead-$10. Total Unit cost- $55 [Note that the Total unit cost = $50] An outside supplier has offered to provide Aitken Corp with the 20,000 subcomponents. What is the maximum price Aitken Corp should pay the outside supplier?
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