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Every year Concord Industries manufactures 10,000 units of part 231 for use in its production cycle. The per unit costs of part 231 are

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Every year Concord Industries manufactures 10,000 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows: Direct materials $4.00 Direct labor 9.00 Variable manufacturing overhead 7.00 Fixed manufacturing overhead 10.00 Total $30.00 Sunland, Inc., has offered to sell 10,000 units of part 231 to Concord for $32 per unit. If Concord accepts Sunland's offer, its freed-up facilities could be used to earn $11,700 in contribution margin by manufacturing part 240. In addition, Concord would eliminate 40% of the fixed overhead applied to part

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