Gent Designs requires three units of part A for every unit of A1 that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4,200 units were produced:

Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production.

Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. If Gent accepts the offer, all of the variable costs and $1,260 of the fixed costs will be avoided.

Gent Designs requires three units of part A for every unit of A1 that it produces. Currently, part A is mad Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allc Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. If Gent accepts A. Calculate the differential cost? B. Should Gent Designs accept the offer from Cory Corporation