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The Camel Company produces 11.400 units of Item Roto 454 annually at a total cost of $216,600, Direct materials Direct labor Variable overhead Fixed overhead
The Camel Company produces 11.400 units of Item Roto 454 annually at a total cost of $216,600, Direct materials Direct labor Variable overhead Fixed overhead Total $ 22,800 62,700 51,300 79,800 $216,600 The Yukon Company has offered to supply 11,400 units of Roto 454 per year for 518 per unit. It Comel accepts the offer, St per unit of the fixed overhead would be saved. In addition, some of Camels facilities could be rented to a third party for $25,080 per year. At what price would Camel be Indifferent to Yukon's offer? Multiple Choice $18.20 $1770 The Yukon Company has offered to supply 11,400 units of Roto 454 per year for $18 per unit. If Camel accepts the offer $4 per unit of the fixed overhead would be saved. In addition, some of Camel's facilities could be rented to a third party for $25,080 per year. At what price would comel be indifferent to Yukon's offer? Multiple Choice $18.20 $1230 $20.20 $19.20
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