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NO THE ANSWER IS NOT 171,000 NOR 217,400 Every year Culver Industries manufactures 5,700 units of part 231 for use in its production cycle. The

image text in transcribedNO THE ANSWER IS NOT 171,000 NOR 217,400

Every year Culver Industries manufactures 5,700 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total $5 6 10 $30 Flintrock, Inc., has offered to sell 5,700 units of part 231 to Culver for $34 per unit. If Culver accepts Flintrock's offer, its freed-up facilities could be used to earn $10,600 in contribution margin by manufacturing part 240 In addition Culver would eliminate 40% of the fixe overhead applied to part 23 (a) Calculate total relevant cost to make and net cost to buy Total relevant cost to make Net relevant cost to buy (b) Should Culver accept Flintrock's offer? Click if you would like to Show Work for this question: pen Show Work

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