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QUESTION 2 8 points Save Answer Patriot Motorhomes produces caravans and campervans. Patriot currently manufactures 10,000 units of a component that it uses in the
QUESTION 2 8 points Save Answer Patriot Motorhomes produces caravans and campervans. Patriot currently manufactures 10,000 units of a component that it uses in the production of campervans. The costs per unit of this component are listed in the table below: $12 60 Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Total 24 32 $128 Supercheap Auto has offered to sell Patriot 10,000 units of the part for $120 per unit. The factory space could be used to manufacture another component at a savings of $180,000 if Patriot accepts Supercheap's offer. In addition, $20 per unit of fixed manufacturing overhead on the original component would be eliminated. Required: Should Patriot accept Supercheap's offer or should Patriot continue producing their own component ? (8 marks)
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