Motor Corp. manufactures machine parts for boat engines. The CEO, James Hamilton, was considering are offer from a subcontractor who would provide 3,000 units of product AB100 for Hamilton for a price $230,000. if Motor Corp. does not parches these parts from the sub contractor it must produce them in-house with the flowing per-unit costs: 

Direct Material.............................$40

Direct labor..................................25

Variable overhead.......................15

Allocated fixed overhead...........4

In addition to the above costs, if Hamilton produces part AB100, be a would incur incremental fixed overhead of $10,000 

Required: 

Calculate the relevant costs of producing 3,000 units of products AB100.

Answer rating: 100% (QA)

The relevant costs of producing 3000 units of products AB100 Per unit 3000 units Dir... View the full answer