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KAP Co. produces a variety of snack products, including fried pork rinds. The cost of one batch of pork rinds is below: Direct materials $12.00

KAP Co. produces a variety of snack products, including fried pork rinds. The cost of one batch of pork rinds is below: Direct materials $12.00 Direct labor 10.00 Variable overhead 7.00 Fixed overhead 9.00 An outside supplier has offered to produce the pork rinds for $27 per batch. How much will KAP save if it accepts the offer? (Points : 2)

$18.00 per batch $13.00 per batch $4.00 per batch $3.00 per batch

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