Javamaster manufactures and sells premium coffee makers which include bought a car fin style and singleserve capabilities. Each coffee maker includes an electronic controller. It can be programmed via a keypad on the coffee maker or via cell phone app.

Recently, Java master has found it difficult to manufacture the electronic controller and is entering a protocol for coffee-tech, subcontractor to have them manufacture all the javamaster's annual demand from the device.

Coffee tech has offered to manufacture job my Java masters annual demand for the electronic controller for 35 per unit Java masters current manufacturing cost for the electron a controller based on the current annual volume of 25,000 units is as follows

al demand for the ek ent m ulxturing costs for the electronic controller, based on Cost Type $ / Unit Direct Materials $15.00 Direct Labor * $5.00 Variable Munufacturing Overhead $4.00 Fixed Manufacturing Overhead $25 00 Total Manufacturing Costs $49.00 ccepting the Coffee-tech prop