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Boston Exemcutive, Incy, produces executive Hmousines and currentiy manufoctures the mini-bar inset at these costst The company received an offer from Elite Mini-Bars to produce

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Boston Exemcutive, Incy, produces executive Hmousines and currentiy manufoctures the mini-bar inset at these costst The company received an offer from Elite Mini-Bars to produce the insets for 52,120 per unit and supply 1,000 mini-bars for the coming year's estimated production. If the company accepts this offer and shuts down production of this part of the business, production workers and supervisors will be reassigned to other areas. Assume that for the short-term decision-making process demonstrated in this problem, the company's total labor costs (direct labor and supervisor salaries) will remain the same if the bar inserts are purchased. The specialized equipment cannot be used and has no market value. However, the space occupied by the mini-bar production can be used by a different production group that will lease it for $56,000 per year. production can be used by a different production group that will lease it for $56,000 per year. A. Calculate the differential cost of mini-bar insert. If an amount hox dons not menuire an antrv leaua it hlank. inn-mim atn kna Jo

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