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Bonita Music produces 60500 blank CDs on which to record music. The CDs have the following costs: Direct Materials $10600 Direct Labour 16000 Variable Overhead
Bonita Music produces 60500 blank CDs on which to record music. The CDs have the following costs: Direct Materials $10600 Direct Labour 16000 Variable Overhead 3000 Fixed Overhead 7300 Bonita could avoid $4500 in fixed overhead costs if it acquires the CDs externally. If cost minimization is the major consideration and the company would prefer to buy the 60500 units externally, what is the maximum external price that Bonita would expect to pay for the units? $36900 $32400 $34100 $29600
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