Q 25

Sheridan makes various cookies and cupcakes. The costs of each batch of cupcakes and cookies are as follows: Direct materials $16 Direct labor 15 Variable overhead 8 Fixed overhead 11 An outside supplier has offered to make the cupcakes and cookies for $25 per batch. If Sheridan accepts the offer to outsource the production of the cupcakes and cookies, it will not be able to avoid the $11 of fixed overhead. How much will Sheridan save if it accepts the offer? O $12 per batch O $14 per batch O $1 per batch O $25 per batch