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Corridor Co. can produce 130 units of a necessary component part with the following costs: Direct materials $23536 Fixed selling and admin 17585 Direct labour
Corridor Co. can produce 130 units of a necessary component part with the following costs:
Direct materials | $23536 |
Fixed selling and admin | 17585 |
Direct labour | 18322 |
Variable manufacturing overhead | 37651 |
Fixed manufacturing overhead | 10312 |
If Corridor purchases the component externally, $3879 of the fixed costs can be avoided. In addition, the warehouse could be rented out for $5768 per year. Below what external price for the 130 units would Corridor choose to buy instead of make?
Select one:
a. $77620
b. $106741
c. $89156
d. $83388
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