Quirch Inc. manufactures machine parts for aircraft engines. The CEO, Chucky Valters, was considering an offer from a subcontractor that would provide 2,400 units of product PQ107 for Valters for a price of $150,000. If Quirch does not purchase these parts from the subcontractor it must produce them in- house with the following unit costs: Direct materials Direct labor Variable overhead Cost per Unit $31 19 8 In addition to the above costs, if Quirch produces part PQ107, it would have a retooling and design cost of $9,800. The relevant costs of producing 2,400 units of product PQ107 internally are:

Qulrch inc, manufactures machine parts for alicraft engines. The CEO, Chucky Vaiters, was considering an offer from a subcontractor that would provide 2,400 units of product PO107 for Valters for a price of $150,000. If Qulich does not purchase these parts from the subcontractor it must produce them in. house with the following unit costs: In addition to the above costs, if Quirch produces part PQAO7, it would have a tefooling and design cost of $9.800. The relevant costs of producing 2,400 units of product PQtor internally are