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show all steps Company makes 25,000 units per year of a part it uses in the products it manufactures. The unit product cost of th
show all steps Company makes 25,000 units per year of a part it uses in the products it manufactures. The unit product cost of th bart is computed as follows: An outside supplier has offered to sell the company all of these parts it needs. If the company accepts this offer, the facilities now being used to make the part would be idle and fixed manufacturing overhead would be reduced by 35% of current cost. The variable selling costs would be reduced to 20% of current cost. Required: What is the maximum amount the company should be willing to pay an outside supplier per unit for the part
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