Question: Question 10 of 11 < > 4.5/9 E !!! View Policies Show Attempt History Current Attempt in Progress Blossom Water Co. is a leading


Question 10 of 11 < > 4.5/9 E !!! View Policies Show Attempt History Current Attempt in Progress Blossom Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used in each of its systems. Based on an annual production of 51,000 timers, the company has calculated the following unit costs. Direct fixed costs include supervisory and clerical salaries and equipment depreciation. Direct materials Direct labor Variable manufacturing overhead Direct fixed manufacturing overhead $12 6 3 10 (30% salaries, 70% depreciation) Allocated fixed manufacturing overhead 7 Total unit cost $38 Clifton Clocks has offered to provide the timer units to Blossom at a price of $36 per unit. If Blossom accepts the offer, the current timer unit supervisory and clerical staff will be laid off.
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