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One of the computer manufacturers is studying manufacturing 20,000 transistors through the unused capacity for their machines. They expect the following costs to be incurred:
One of the computer manufacturers is studying manufacturing 20,000 transistors through the unused capacity for their machines. They expect the following costs to be incurred: $40,000 DM, $100,000 DL, $40,000 Ind M, $40,000 machines depreciation, and $25,000 building depreciation. The company has an offer to purchase the transistor at $8 from an external supplier. Total relevant costs to produce 20,000 transistors would be:
[[selectone]]
a. $245,000
b. $180,000
c. $140,000
d. $220,000
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