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Sheridan Company can produce 100 units of a necessary component part with the following costs: Direct Materials $12000 Direct Labor 9000 Variable Overhead 13000 Fixed
Sheridan Company can produce 100 units of a necessary component part with the following costs: Direct Materials $12000 Direct Labor 9000 Variable Overhead 13000 Fixed Overhead 8000 If Sheridan Company purchases the component externally, $2000 of the fixed costs can be avoided. What is the maximum amount Sheridan is willing to pay to purchase the 100 units? a)$34000 b)$36000 c)$40000 d)$28000
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