YSTIETOISUUTLICH, KTO WIELUCHY Decor hat is committed to the highest academic standards. As a part of this community, you pledge to uphold the fundamental standards of honesty. espect, and integrity, and accept the responsibility to encourage others to adhere to these standards. The sharing of Information regarding this xam with other students is a violation of these standards and will result in referral for disciplinary action Question 7 7 pts The Hayes Company manufactures and sells several products, one of which is called a slip differential. The company normally sells 30,000 units of the slip differential each month. At this activity level, unit costs are: 4 Direct materials Direct laber Variable manufacturing overhead Pised manufacturing overhead Variable selling ised selling An outside supplier has offered to produce the slip differentials for the Hayes Company, and to ship them directly to the Hayes Company's customers. This arrangement would permit the Hayes Company to reduce its variable selling expenses by 25 percent (due to elimination of freight costs). The facilities now being used to produce the slip differentials would be idle and fixed manufacturing overhead would continue at 70 percent of its present level. Since the facilities will not be needed by Hayes Company, they will be able to rent out the space to other businesses and generate contribution margin of 545.000 a month. The total fixed selling expenses of the company would be unaffected by this decision Required: What is the maximum acceptable price quotation for the slip differentials from the outside supplier? BIVA-A-LEX - 2 x 12pt nome dont 120,000 MacBook Air A 80 !! 3 FS # 3 $ 4 % 5 & 7 2 6 * 8 9 3 Q E R T Y U S D F F G H J