Waterway Industries produces 5000 units of part A12E The following costs were incurred for that level of production Direct materials $ 65000 Direct labor 170000 Variable overhead 85000 Fixed overhead 175000 If Waterway buys the part from an outside supplier, $10000 of the fixed overhead is avoidable What is the relevant cost per unit of part A12E $66 $99 $97 $64

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Waterway Industries produces 5000 units of part A12E. The following costs were incurred for that level of production: Direct materials $ 65000 Direct labor 170000

Waterway Industries produces 5000 units of part A12E. The following costs were incurred for that level of production:

Direct materials	$ 65000
Direct labor	170000
Variable overhead	85000
Fixed overhead	175000

If Waterway buys the part from an outside supplier, $10000 of the fixed overhead is avoidable. What is the relevant cost per unit of part A12E?

$66

$99

$97

$64

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