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Current Attempt in Progress Every year Cheyenne Industries manufactures 8,000 units of part 231 for use in its production cycle. The per unit costs of
Current Attempt in Progress Every year Cheyenne Industries manufactures 8,000 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows 53.00 9.00 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 7.00 10.00 Total $29.00 Pharoah, Inc. has offered to sell 8.000 units of part 231 to Cheyenne for $32 per unit. If Cheyenne accepts Pharoah's offer, its freed-up facilities could be used to earn $13.700 in contribution margin by manufacturing part 240. In addition Cheyenne would eliminate 40% of the fixed overhead applied to part 231. (a) Calculate total relevant cost to make and net cost to buy Total relevant cost to make s Net relevant cost to buy 5 eTextbook and Media Saw for Later Attempts:0 of 10 used Summit (b) The parts of this question must be completed in order. This part will be able when you complete the part above
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