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Question 2 its systems. Based on an annual production Blossom Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the
Question 2 its systems. Based on an annual production Blossom Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used following unit costs. Direct fixed costs include supervisory and clerical salaries and equipment depreciation. each f 40,390 timers, the company has calculated the Direct materials $12 Direct labor ed ad i (30% salaries, 70% depreciation) Allocated fixed manufacturing overhead $42 Total unit cost Clifton Clocks has offered to provide the timer units to Blossom at a price of $34 per unit. If Blossom accepts the offer, the current timer unit supervisory and clerical staff will be laid off. (b1) Assume that if Blossom Water accepts Clifton's offer, the company can use the freed-up manufacturing facilities to manufacture a new line of growing lights. The company estimates it can sell 98,830 of the new lights each year at a price of make the timer units and the net cost if they accept this new product line, Calculate the total relevant cost t Cliton's ofe sts of the lights are expected to be $7 per unit. The timer unit supervisory and clerical staff would be transferred t Total relevant cost to make Net relevant cost if they accept Clifton's offer Click if you would like to Show Work for this question: Open Show Work
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