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The Thresher Toy Company manufactures its Dreem Lites Kids' Pillow. Monthly production costs for 10,000 units are as follows: It is estimated that 10% of

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The Thresher Toy Company manufactures its Dreem Lites Kids' Pillow. Monthly production costs for 10,000 units are as follows: It is estimated that 10% of the fryed overhead costs assigned to the Dreem Lites Pillow will no longer be incurred if the compart outsources production of the Dreem Lites Pillow to an outside supplier. Thresher Toy has the option of purchasing the pillow from the outside supplier at $8.50 per unit. If Thresher Toy accepts the offer from the outside supplier, the monthly avoidable costs (costs that will no longer be incurred) total: $100,000 $82,000 $50,000 $98,000

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