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An outside supplier has offered to sell 13,000 units of part I- 5 each year to JenCo for $23 per part. If JenCo accepts this
An outside supplier has offered to sell 13,000 units of part I- 5 each year to JenCo for $23 per part. If JenCo accepts this offer, the facilities now being used to manufactur part I- 5 could be rented to another company at an annual rental of $170,000. However, JenCo has determined that fifty percent of the fixed manufacturing overhead bein applied to part I-5 would continue even if part I-5 were purchased from the outside supplier. a) Calculate the differential costs to make the parts. Please make sure your final answer(s) are accurate to 2 decimal places. b) Calculate the differential costs to buy the parts. c) Calculate the total cost of making the parts
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