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MicroTech currently makes the motherboards used in its laptop computers. Unit costs for manufacturing the boards is as follows: Unit Cost Direct Material $110 Direct
MicroTech currently makes the motherboards used in its laptop computers. Unit costs for manufacturing the boards is as follows: Unit Cost Direct Material $110 Direct Labor $60 Variable Overhead $75 Fixed Overhead $100 Total $350 An outside supplier has offered to supply the motherboards at a cost of $285 each plus a $15 shipping charge per board. 40% of the fixed overhead will be avoided if the motherboards are purchased. MicroTech has no alternative use for the facilities. Should MicroTech accept the offer?
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