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Marigold Corp. produces 5000 units of part A12E. The following costs were incurred for that level of production: Direct materials $ 55000 Direct labor 160000
Marigold Corp. produces 5000 units of part A12E. The following costs were incurred for that level of production: Direct materials $ 55000 Direct labor 160000 Variable overhead 75000 Fixed overhead 175000 If Marigold buys the part from an outside supplier, $20000 of the fixed overhead is avoidable.
What is the relevant cost per unit of part A12E?
$58
$89
$62
$93
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