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Evans Engineering s product component average unit cost is $ 2 6 , comprised of $ 1 0 in direct materials, $ 7 in direct
Evans Engineerings product component average unit cost is $ comprised of $ in direct materials, $ in direct labor, and $ in overhead, of which $ is variable. Evans has received an offer from an outside supplier who could produce the component part for a unit price of $ If Evans purchases the component from the outside supplier, they could eliminate of fixed overhead. The perunit impact of purchasing from the outside supplier is show work:
a $ disadvantage
b $ advantage
c $ advantage
d $ disadvantage
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