Vaughn Music produces 60800 blank CDs on which to record music. The CDs have the following costs
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Vaughn Music produces 60800 blank CDs on which to record music. The CDs have the following costs Direct Materials $10600 Direct Labour 14800 Variable Overhead 2800 Fixed Overhead 6800 None of Vaughni's foxed overhead costs can be reduced, but another product could be made that would increase the operating income by $4400 if the CDs were acquired externally If cost minimization is a major consideration and the company would prefer to buy the CDs, what is the maximum external price that Vaughn would be willing to accept to acquire the 60800 units externally
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
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