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Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials $ 45.00 Direct labor 35.00
Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials $ 45.00 Direct labor 35.00 Variable overhead 33.00 Fixed overhead 20.00 Total $133.00
Crayola Technologies Inc. has contacted Rubium with an offer to sell 5,000 of the subassemblies for $135.00 each. Rubium will eliminate $65,000 of fixed overhead if it accepts the proposal.
What are the relevant costs for Rubium?
a. 630,000 b. 465,000 c. 460,000 d. 780,000
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