Ortiz Co. produces 5,000 units of part A12E. The following costs were incurred for that level of production: Direct materials $ 55,000 Direct labor 160,000 Variable overhead 75,000 175,000 Fixed overhead If Ortiz buys the part from an outside supplier, $40,000 of the fixed overhead is avoidable. Reference: Ref 7-3 What is the relevant cost per unit of part A12E? O $58 O $85 $93

If Ortiz buys the part from an outside supplier, $40,000 of the fixed overhead is avoidable. Retimenicatireir 70 What is the relevant cost per unit of part A12E ? $58 $85