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pleAse, help with the following problem with as much detailed solution as possible: Tyson Company makes 15,000 units per year of a component part that
pleAse, help with the following problem with as much detailed solution as possible:
Tyson Company makes 15,000 units per year of a component part that it uses in the products it manufactures. The unit cost of this component part is given below: direct materials direct labor ... variable overhead fixed overhead total cost per unit $14.72 $26.93 $11.18 $19.60 $72.43 An outside supplier has offered to sell Tyson Company 15,000 units of this part for $70.16 per unit. If Tyson Company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin earned on this other product would be $42,000 per year. If Tyson Company accepts the outside supplier's offer, 35% of the fixed overhead cost being applied to the part would be eliminated. The remaining 65% of the fixed overhead cost would continue to be incurred and would be allocated to the company's remaining products. Calculate the selling price per unit charged by the outside supplier that would make Tyson Company economically indifferent between making and buying the partStep by Step Solution
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