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Genent's Preserves currently makes jams and jellies and a variety of decorative jars used for packaging. An outside supplier has offered to supply all of
Genent's Preserves currently makes jams and jellies and a variety of decorative jars used for packaging. An outside supplier has offered to supply all of the needed decorative jars. For this make-or-buy decision, a cost analysis revealed the following avoidable unit costs for the decorative jars: Direct materials Direct labor Unit - related support costs Batch-related support costs Product - sustaining support costs Facility - sustaining support costs Total cost per jar $0.56 0.14 0.30 0.31 0.48 0.61 $2.40 The relevant cost per jar is O A. $1.79 per jar O B. $1.00 per jar O C. $0.70 per jar OD. $2.40 per jar
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