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Maxine Enterprises requires 4-units of bowd for every unit of Rondun that it produces. Currently, bowds are made by Maxine, with these per-unit costs in

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Maxine Enterprises requires 4-units of bowd for every unit of Rondun that it produces. Currently, bowds are made by Maxine, with these per-unit costs in a month when 4,500 units of Rondun were produced: Direct Materials $ 4.85 Direct Labor $ 2.70 Manufacturing Overhead $ 2.10 Total $ 9.65 Variable manufacturing overhead is applied at $1.35 per unit. The other $0.75 of overhead consists of allocated fixed costs. Maxine will need 8,000 units of bowd for next year's production Alpha Corporation has offered to supply 8,000 units of bowd at a price of $8.00 per unit. If Maxine accepts the offer, all of the variable costs and $1,500 of the fixed costs will be avoided. Should Maxine accept the offer from Alpha Corporation

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