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how do you do tbis? Gent Designs requires three units of part A for every unit of Al that it produces Currently, part is made
how do you do tbis?
Gent Designs requires three units of part A for every unit of Al that it produces Currently, part is made by Gent, with these per unit costs in a month when 4, 100 units were produced: Direct materials $4.00 Direct labor 1:50 Manufacturing overhead 1.20 Total $6.70 Variable manufacturing overhead is applied at $1.00 per unit. The other 50.20 of overhead consists of allocated fied costs. Gent will need 6,000 units of part A for the next year's production Cory Corporation has offered to supply 5,000 units of part A at a price of $6.90 per unit 1 Gent accepts the offer all of the variable costs and 8820 of the fixed coses wat be avoided A. Calculate the differential cost? Cost to buy Cost to make Differential cost 3. Should Gent Designs accept the offer from Cory Corporation? Gent Designs Step by Step Solution
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