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Chewbacca corporation currently manufactures a subassembly for its main product. The cost per unit are as follows: direct materials are $1 direct labor is $10
Chewbacca corporation currently manufactures a subassembly for its main product. The cost per unit are as follows: direct materials are $1 direct labor is $10 variable overhead is $5 and fixed overhead is $8. Han Solo company has contacted Chewbacca with an offer to sell them 5000 of the subassemblies for $22 each Chewbacca will eliminate $25,000 of fixed overhead if it accept this proposal. What are the relevant internal costs for Chewbacca?
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