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Marigold Music produces 59200 blank CDs on which to record music. The CDs have the following costs: Question 3 Marigold Music produces 59200 blank CDs

Marigold Music produces 59200 blank CDs on which to record music. The CDs have the following costs:

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Question 3 Marigold Music produces 59200 blank CDs on which to record music. The CD5 have the following costs: Dlrect Materials $11600 Direct Labour 14000 Variable Overhead 3400 Fixed Overhead 7200 None of Marigold's fixed overhead costs can be reduced, but another product could be made that would increase prot contribution by $3900 if the CDs were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the CDs, what is the maximum external price that Marigold would be willing to accept to acquire the 59200 units externally? 7 $36200 T\" $32300 \"f $32900 '7 $40100

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