Every year Monty Industries manufactures 8,600 units of part 231 for use in its production cycle....

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Every year Monty Industries manufactures 8,600 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total $5.00 9.00 7.00 10.00 $31.00 Wildhorse, Inc., has offered to sell 8,600 units of part 231 to Monty for $34 per unit. If Monty accepts Wildhorse's offer, its freed-up facilities could be used to earn $15,000 in contribution margin by manufacturing part 240. In addition, Monty would eliminate 50% of the fixed overhead applied to part 231. (a) Your answer is correct. Calculate total relevant cost to make and net cost to buy. (b) Total relevant cost to make $ 223600 Net relevant cost to buy $ 277400 eTextbook and Media Should Monty accept Wildhorse's offer? Attempts: 2 of 3 used Every year Monty Industries manufactures 8,600 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total $5.00 9.00 7.00 10.00 $31.00 Wildhorse, Inc., has offered to sell 8,600 units of part 231 to Monty for $34 per unit. If Monty accepts Wildhorse's offer, its freed-up facilities could be used to earn $15,000 in contribution margin by manufacturing part 240. In addition, Monty would eliminate 50% of the fixed overhead applied to part 231. (a) Your answer is correct. Calculate total relevant cost to make and net cost to buy. (b) Total relevant cost to make $ 223600 Net relevant cost to buy $ 277400 eTextbook and Media Should Monty accept Wildhorse's offer? Attempts: 2 of 3 used