Q21

Sheridan Music produces 59200 blank CDs on which to record music. The CDs have the following costs: Direct Materials $10300 Direct Labour 15500 Variable Overhead 3400 Fixed Overhead 7100 Sheridan could avoid $4500 in fixed overhead costs if it acquires the CDs externally. If cost minimization is the major consideration and the company would prefer to buy the 59200 units externally, what is the maximum external price that Sheridan would expect to pay for the units? O $29200 O $36300 $31800 O $33700