Question: Gintel Corp. manufactures computer chips. Chip EE's costs are in the table below. An outside chip maker has offered to produce the chip for $700.

 Gintel Corp. manufactures computer chips. Chip EE's costs are in the

Gintel Corp. manufactures computer chips. Chip EE's costs are in the table below. An outside chip maker has offered to produce the chip for $700. The relevant cost of making the computer chip is: 10-19 A. $720 B. $900 C. $780 D. $600 Unit Cost Direct materials Direct labor Variable overhead Fixed overhead (40% is avoidable) $200 240 160 300

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