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Project Description:

gandolfi company manufactures a part for use in its production of automobiles. when 10,000 items are produced, the costs per unit are:

direct materials $ 12
direct manufacturing labor 60
variable manufacturing overhead 24
fixed manufacturing overhead 32
total $128

super company has offered to sell gandolfi company 10,000 units of the part for $120 per unit. the plant facilities could be used to manufacture another part at a savings of $180,000 if gandolfi accepts the supplier's offer. in addition, $20 per unit of fixed manufacturing overhead on the original part would be eliminated.


a. what is the relevant per unit cost for the original part?
b. which alternative is best for gandolfi company? by how much?
Skills Required:
Project Stats:

Price Type: Negotiable

Total Proposals: 3
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