Question: Help Save & Edit submit Submit Olive Corp. currently makes 13,600 subcomponents a year in one of its factories. The unit costs to produce are:
Help Save & Edit submit Submit Olive Corp. currently makes 13,600 subcomponents a year in one of its factories. The unit costs to produce are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $ 25 23 14 10 $ 72 An outside supplier has offered to provide Ollve Corp. with the 13,600 subcomponents at a $90 per unit price. Fixed overhead is not avoidable. What is the maximum price Olive Corp. should pay the outside supplier? Multiple Choice $62 $90 O o $72 $100
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