Fair Engineenng Company manufactures part QE767 used in several of its engine models. Monthly production costs for 10,000 units are as follows $80,000 20,000 50,000 40,000 $190,000 Direct materials Direct labor Variable support cos Fixed support costs Total costs It is estimated that 20% of the fixed support costs assigned to part QE 767 will no longer be incured if the company purchases the part from the outside supplier Fair Engineering Company has the option of purchasing the part from an outside supplier at $16 per unit. If Fair Engineering Company accepts the offer from the outside supplier, the monthly avoidable costs (costs that will no longer be incurred) total: Previous) (Bookmark] Next Summar Submit Start