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Holt Pty Ltd presently makes 20,000 units of a certain part to use in production. The cost to make the part is $20 per unit
Holt Pty Ltd presently makes 20,000 units of a certain part to use in production. The cost to make the part is $20 per unit including $15 in variable costs and $5 in fixed overhead applied. If Holt buys the part from Bricker, the cost would be $18 per unit and the released facilities could not be used for any other activity. 80% of the fixed overhead would continue. Determine the relevant costs to make the part.
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