Question
The Park Avenue Corporation currently makes a part required in its finished product. The company uses 2,104 units of this part annually. Park Avenue Corp
The Park Avenue Corporation currently makes a part required in its finished product. The company uses 2,104 units of this part annually. Park Avenue Corp has been approached by a vendor to provide this part for $13.66 each. The following cost information is provided Direct Materials per unit $5.63 Direct Labor per unit $7.30 Variable Factory Overhead per unit $2.50 Fixed Factory Overhead per unit $7.50 How much would Park Avenue Corporation save by having the vendor make the part, instead of making it themselves? Enter your answer rounded to the nearest whole number. Don't enter dollar signs or commas.
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