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Vaughns Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $127000 Direct Labor 32000 Variable Overhead 44000
Vaughns Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $127000 Direct Labor 32000 Variable Overhead 44000 Fixed Overhead 30000 If Vaughns Manufacturing Company purchases the component externally, $20000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying? Select answer from the options below $223000 $203000 $106000 $94000
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