King Co. produces 5,000 units of part B24E. The following costs were incurred for that level of

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King Co. produces 5,000 units of part B24E. The following costs were incurred for that level of production:

Direct materials $ 55,000

Direct labor 160,000

Variable overhead 75,000

Fixed overhead 175,000

If King buys the part from an outside supplier, $40,000 of the fixed overhead is avoidable.

14. What is the relevant cost per unit of part B24E?

15. If the outside supplier offers a unit price of $68, total net income will increase (decrease) by how much?

Related Book For answer-question

Managerial Accounting Creating Value in a Dynamic Business Environment

ISBN: 978-0078110917

9th edition

Authors: Ronald W. Hilton

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Posted Date: Jul 08, 2021 06:14 AM

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King Co. produces 5,000 units of part B24E. The following costs were incurred for that level of

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14 Direct materials 55000 Direct labor 16... View the full answer

Managerial Accounting Creating Value in a Dynamic Business Environment

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