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Question 7 of 30 - / 1 III View Policies Current Attempt in Progress Sheffield Music produces 60000 blank CDs on which to record music.
Question 7 of 30 - / 1 III View Policies Current Attempt in Progress Sheffield Music produces 60000 blank CDs on which to record music. The CDs have the following costs: Direct Materials $10000 Direct Labour 14000 Variable Overhead 2900 Fixed Overhead 7400 None of Sheffield's fixed overhead costs can be reduced, but another product could be made that would increase the operating income by $4400 if the CDs were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the CDs, what is the maximum external price that Sheffield would be willing to accept to acquire the 60000 units externally? O $38700 O $34300 O $31300 O $29900 Save for Later Attempts: 0 of 1 used Submit
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