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The Ted Company is considering eliminating the following product line: Product AXP Sales $43,000 Less variable costs: Raw materials 26,500 Direct labor 6,200 Contribution margin

The Ted Company is considering eliminating the following product line:

Product AXP
Sales $43,000
Less variable costs:
Raw materials 26,500
Direct labor 6,200
Contribution margin $10,300
Less fixed costs:
Production costs allocated to products 15,600
Profit (loss) $(5,300)

What amount of cost is avoidable if Ted outsources production of this product?

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