Please show work. thank you TM Ltd. currently manufactures Part XMB, which is used in one of
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Please show work. thank you
TM Ltd. currently manufactures Part XMB, which is used in one of its products. At its production level of 3496 units, the unit product cost of Part XMB is as follows: Direct labour Direct materials Manufacturing overhead (42% is variable) A supplier, Tam Co., has offered to sell TM Ltd. 3496 units of Part XMB. TM Ltd. has determined that if it purchases the part externally, all costs will be avoidable with the exception of three quarters of the fixed manufacturing overhead. In determining whether to accept Tam Co.'s offer, what are the relevant costs to TM of manufacturing the parts internally (cost to make)? Select one: a. $0 b. 579482 c. 5108376 d. 569850
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