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 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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