Answered step by step
Verified Expert Solution
Question
1 Approved Answer
JAX's Shop can make 1,000 units of a necessary component with the following costs: Direct materials 2001 Direct labor Variable overhead Fixed overhead P64,000 16,000
JAX's Shop can make 1,000 units of a necessary component with the following costs: Direct materials 2001 Direct labor Variable overhead Fixed overhead P64,000 16,000 8,000 20,000 The company can purchase the 1,000 units externally for P104,000. The unavoidable fixed costs are P5,000 if the units are purchased externally. How much is the external price that would make the company indifferent between making or buying the part. 93,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started