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robin company currently produces 8000 units of part b13. current costs for part b13 are as follows 9. Robin Company currently produces 8,000 units of

robin company currently produces 8000 units of part b13. current costs for part b13 are as follows
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9. Robin Company currently produces 8,000 units of part B13. Current costs for part B13 inc Net Tnco lost an are as follows: Direct materials Direct labor Factory rent Administrative General factory overhead Total $12 10 $45 If the company decides to buy part B13, 50% of the administrative costs would be avoided. All of the Robin Company items, including part B13, are manufactured in the same rented production facility. The company has an offer from a wholesaler that wishes to sell the part to Robin for $31 per unit. What effect will occur if the company decides to accept the offer? DThe cost for this part will increase by $5 per unit. B) The cost for this part will be the same. C) The cost for this part will decrease by $14 per unit. D) The cost for this part will decrease by $10 per unit. 12t9t 10/2- 26 in Cots wnd 31,Cast Since thy increase bpur unit wauid Page 3 297D

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