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Aril Industries is a multiproduct company that currently manufactures 3 0 , 0 0 0 units of Part 7 3 0 each month for use
Aril Industries is a multiproduct company that currently manufactures units of Part each month for use in production. The facilities now being used to produce Part have fixed monthly overhead costs of $ and a theoretical capacity to produce units per month. If Aril were to buy Part from an outside supplier, the facilities would be idle, and of fixed costs would continue to be incurred. There are no alternative uses for the facilities. The variable production costs of Part are $ per unit. Fixed overhead is allocated based on planned production levels.
If Aril Industries continues to use units of Part each month, it would realize a net benefit by purchasing Part from an outside supplier only if the suppliers unit price is less than:
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