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TheBridgeportCompany manufactures5,900units of a part that could be purchased from an outside supplier for $16each.Bridgeport's costs to manufacture each part are as follows: Direct materials$4

TheBridgeportCompany manufactures5,900units of a part that could be purchased from an outside supplier for $16each.Bridgeport's costs to manufacture each part are as follows:

Direct materials$4

Direct labor 3

Variable manufacturing overhead 6

Fixed manufacturing overhead 10

Total $23

All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses.

(a-b)

(a)Calculate relevant cost to make.

Relevent cost to make $ per unit

(b)ShouldBridgeportcontinue to manufacture the part?

Yes

No

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