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CONESTOGA AME ENGAGE Marty Monitors b mcdonald what tya b tesla what th Annual Production Costs for 19-inch LCD Monitor Per Unit 10,000 Units Direct

CONESTOGA AME ENGAGE Marty Monitors b mcdonald what tya b tesla what th Annual Production Costs for 19-inch LCD Monitor Per Unit 10,000 Units Direct Materials $29.00 $290,000 Direct Labor $15.00 $150,000 Variable Overhead $9.00 $90,000 Production Supervisor's Salary $12.00 $120,000 Depreciation of LCD manufacturing equipment $10.00 $100,000 Allocated Fixed Overhead $14.00 $140,000 Total Cost $89.00 $890,000 An external supplier has offered to provide Marty Monitors 10,000 units of the same LCD mo price of $50 each. Also consider the following information: The LCD manufacturing equipment has no salvage value and has no other use aside from LCD monitors. It cannot be sold. The fixed overhead costs allocated to the LCD monitors are common to all items produced The production supervisor will take over duties in another department if the monitors are external supplier. If this is the case, his annual salary will drop to $108,000. Should the company continue manufacturing the monitors internally or begin purchasing the ere to search acerimage text in transcribed

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