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Corridor Co. can produce 130 units of a necessary component part with the following costs: Direct materials $35897 Fixed selling and admin 20610 Direct labour
Corridor Co. can produce 130 units of a necessary component part with the following costs: Direct materials $35897 Fixed selling and admin 20610 Direct labour 14571 Variable manufacturing overhead 49218 Fixed manufacturing overhead 16042 If Corridor purchases the component externally, $2962 of the fixed costs can be avoided. In addition, the warehouse could be rented out for $5066 per year. Below what external price for the 130 units would Corridor choose to buy instead of make? Select one: a. $97582 b. $107714 c. $128324 d. $102648
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