info for decision

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.

required:

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

Completed
Total Proposals: 3
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