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The Flint Company manufactures 4,200 units of a part that could be purchased from an outside supplier for $14 each. Flint's costs to manufacture each
The Flint Company manufactures 4,200 units of a part that could be purchased from an outside supplier for $14 each. Flint's costs to manufacture each part are as follows: All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses. (a-b) (a) Calculate relevant cost to make. Relevent cost to make \$ per unit (b) Should Flint continue to manufacture the part? eTextbook and Media Attempts: 1 of 3 used (cd) (c) If Flint could lease the manufacturing facilities to another company for $24,200 per year, what would be the net total cost to outsource production of the part? Net cost to buy $ (d) Should Flint outsource production of the part given the opportunity to lease the facilities
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