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The total cost to make 10,000 units of one of Pair-a-Dice's many products is $230,000 and consists of $150,000 of total variable costs and $80,000
The total cost to make 10,000 units of one of Pair-a-Dice's many products is $230,000 and consists of $150,000 of total variable costs and $80,000 of allocated fixed costs. Pair-of-Dice can buy these 10,000 units from an outside supplier for $20 per unit, but the $80,000 in fixed costs now allocated to this product will remain unchanged. Calculate the savings (or loss) per unit if it were to outsource this product (use a negative sign it a loss)
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