Question
ColorPro uses part 87A in the production of color printers. Unit manufacturing costs for part 87A are: Direct materials $8 Direct labor 2 Variable overhead
ColorPro uses part 87A in the production of color printers. Unit manufacturing costs for part 87A are:
| Direct materials | $8 |
| Direct labor | 2 |
| Variable overhead | 1 |
| Fixed overhead | 4 |
ColorPro uses 100,000 units of 87A per year. Filbert Company has offered to sell ColorPro 100,000 units of 87A per year for $12. Fixed overhead is unavoidable. Refer to Figure 13-2. Should ColorPro make or buy the part?
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Public Finance
Authors: Richard W. Tresch
4th Edition
0128228644, 978-0128228647
