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Kyoto Company is considering buying Part No. 0210 from an outside supplier instead of manufacturing the part as it is now doing. The annual requirement
Kyoto Company is considering buying Part No. 0210 from an outside supplier instead of manufacturing the part as it is now doing. The annual requirement for that Part No. 0210 is 80,000 units. The cost to manufacture this part is: Per Unit Direct Materials 14.00 Direct Labor 25.00 Manufacturing Overhead: Variable 12.00 Fixed 24.00 Total Unit Cost 75.00 An offer was received from a supplier to supply Part 0210 for P55.00 per unit. Furthermore, fixed manufacturing overhead will be reduced by 25% if the offer is accepted. D Question 5 3 pts What is the total cost to purchase 80,000 units of Part 0210 for decision making? O 4,400,000 O 6,320,000 Activate Wind O 5,840,000 Go to Settings to O 6,000,000
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