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please highlight the answer and show your work Amundsen Company makes 15,000 units per year of a part it uses in the products it manufactures.
please highlight the answer and show your work
Amundsen Company makes 15,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: An outside supplier has offered to sell the company all of these parts it needs. If the company accepts this offer, the facilities now being used io make the part would be idle and fixed manufacturing overhead would be reduced by 30% of current cost. The variable seling costs would be reduced to 60% of current cost Required What is the maximum amount the company should be wiling to pay an outside supplier per unit for the part Step by Step Solution
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