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oronado Toys can make 5400 toy robots with the following costs: Direct Materials $74600 Direct Labour 30400 Variable Overhead 22100 Fixed Overhead 15000 The company
oronado Toys can make 5400 toy robots with the following costs:
Direct Materials | $74600 |
Direct Labour | 30400 |
Variable Overhead | 22100 |
Fixed Overhead | 15000 |
The company can purchase the 5400 robots externally for $144700. The avoidable fixed costs are $15000 if the units are purchased externally. What is the cost savings if the company makes the robots?
$17600
$15000
$4500
$2600
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