Micky Inc is considering whether to continue to make a component or to buy it from an outside supplier The company uses 17,900 of the components each year The unit product cost of the component according to the company's cost accounting system is given as follows Direct Materials $10 25 Direct Labor 7 43 Variable Manufacturing Overhead 3 62 Fixed Manufacturing Overhead 8 40 Unit Product Cost $29 70 Assume that direct materials and direct labor are variable costs Of the fixed manufacturing overhead, 20 is avoidable if the component were bought from the outside supplier What is the maximum price that Micky would be willing to pay to buy the component from the outside supplier $31 38 $22 98 $29 70 $21 30

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Micky Inc  is considering whether to continue to make a component or to buy it from an outside supplier  The company uses 17,900 of the components each year  The unit product cost of the component according to the company's cost accounting system is given as follows  Direct Materials $10 25 Direct Labor 7 43 Variable Manufacturing Overhead 3 62 Fixed Manufacturing Overhead 8 40 Unit Product Cost $29 70 Assume that direct materials and direct labor are variable costs  Of the fixed manufacturing overhead, 20  is avoidable if the component were bought from the outside supplier  What is the maximum price that Micky would be willing to pay to buy the component from the outside supplier  $31 38 $22 98 $29 70 $21 30

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Micky Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 17,900 of the

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