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Ruth Company produces 1,000 units of a necessary component with the following costs Direct Materials $34,000 Direct Labor $15,000 Variable Overhead $9,000 Fixed Overhead
Ruth Company produces 1,000 units of a necessary component with the following costs Direct Materials $34,000 Direct Labor $15,000 Variable Overhead $9,000 Fixed Overhead $10,000 Ruth Company could avoid $6,000 in fixed overhead costs if it acquires the components externally. what is the maximum external price that Ruth Company would accept to acquire the 1,000 units externally? Select one: O a. $62,000 O b. $59,000 Oc. $58,000 O d. $64,000
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