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thank you!! 10 points Sense Electric Car Maker Tesia makes 100.000 units of 2170 Ceir per year in its Nevada based gafactory for use in
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10 points Sense Electric Car Maker Tesia makes 100.000 units of 2170 Ceir per year in its Nevada based gafactory for use in Model Electric car. Data concerning the unit production costs of the 2170 Cellare as below Direct Materials $0.15 Direct Labor 0.10 Variable Manufacturing Overhead 0.13 Fixed Manufacturing Overhead 0.24 Total Manufacturing Cost per unit 50.62 Elon is considering whether its worth making the cell in its factory or outsource it. An outside supplier has offered to set Tesla all of the 2170 Cerit requires. If Tesi decides to discontinuing the of the above fored manufacturing overhead costs could be avoided. Assume that direct labor and direct materials are variable cost 254 Required: Assume Tesia has no alternative use for the facilities presently devoted to production of the "2170 Cells if the outside supplier offers to set the cells for $0.46 each should con accept the offer your answer with appropriate calculations. 16 points) y support 1. Assume that Tesia could use the facilities presently devoted to production of the 2170 cell to expand production of another product (Model) that would yield an additional contribution margin of $10.000 annually. What is the maximum price Tesla should be willing to pay the outside supplier for 2170 Calls764 Points) Step by Step Solution
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