Question
ZalinskiCompany manufactures a part for its production cycle. The costs per unit for 10,000 units of the part are as follows: Per Unit Direct materials$25.00
ZalinskiCompany manufactures a part for its production cycle. The costs per unit for 10,000 units of the part are as follows:
Per Unit
Direct materials$25.00
Direct labor20.00
Variable factory overhead10.00
Fixed factory overhead15.00
Total costs$70.00
The fixed factory overhead costs are unavoidable.TokicCompany has offered to sell 10,000 units of the same part toZalinskiCompany for $60per unit. Assuming no other use for the facilities,ZalinskiCompany should ________.
A)makethe part to save $25,000
B)makethe part to save $50,000
C)buythe part fromTokicCompany to save $40,000
D)buythe part fromTokicCompany to save $60,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started