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Bonita's produces corn chips. The cost of one batch is below: Direct materials $ 1 9 . 0 0 Direct labour 1 2 . 0

Bonita's produces corn chips. The cost of one batch is below:
Direct materials
$19.00
Direct labour
12.00
Variable overhead
13.00
Fixed overhead
14.00
An outside supplier has offered to produce the corn chips for $25 per batch. How much will Bonita save if it accepts the offer?
$31.00 per batch
$1.00 per batch
$5.00 per batch
$19.00 per batch

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