if Genents Engine company excepts the offer from the outside supplier the monthly affordable costs costs that will no longer be incurred total 1 and 116,840

92,000

115,000

or 93,840

Answer the following questions using the information below: Genent's Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1,000 units are as follows: Direct materials Direct lobor Variable overhead costs Fixed overhead costs Total costs S46,000 11,500 34,500 23.000 $115.000 It is estimated that 8% of the fixed overhead costs assigned to TE456 will no longer be incurred if the company purchases TE456 from the outside supplier. Genent's Engine Company has the option of purchasing the part from an outside supplier at $97.75 per unit