The Planife company manufactures part G which goes into the manufacture of its finished product. The unit cost for manufacturing 30,000 units of Part G is as follows: Raw materials: $4 Direct labor: $22 Variable Manufacturing Overhead: $8 Fixed manufacturing overhead: $13

Unit fixed manufacturing overheads include $5 specific to part G. Other unit fixed manufacturing overheads are common for all products manufactured by the company and are charged to the manufacturing cost of G.

The Verona company offered to sell the 30,000 units of Exhibit G to Planife at a price of $46 per unit. If Planife accepts Verona's offer, the facilities thus freed up can be used to save $220,000 of relevant costs in the manufacture of Part G. Choose the correct answer:

Question 23 options:

a- If purchased: $190,000 loss

b- No answer fits

c- If purchased: $10,000 loss

d- If fabricated: gain of $430,000

e- If fabricated: $250,000 loss