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Every year Pina Industries manufactures 5,900 units of part 231 for use in its production cycle. The per unit costs of part 231 are

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Every year Pina Industries manufactures 5,900 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows: Direct materials $ 3.00 Direct labor 10.00 Variable manufacturing overhead 6.00 Fixed manufacturing overhead Total 10.00 $29.00 Crane, Inc., has offered to sell 5,900 units of part 231 to Pina for $33 per unit. If Pina accepts Crane's offer, its freed-up facilities could be used to earn $11,300 in contribution margin by manufacturing part 240. In addition, Pina would eliminate 50% 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 $ Net relevant cost to buy $

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