Question: QUESTION 2 The following information is available regarding Krusty's Fried Chicken for the month of October Revenue Total direct material cost Total direct labor cost

 QUESTION 2 The following information is available regarding Krusty's Fried Chicken

QUESTION 2 The following information is available regarding Krusty's Fried Chicken for the month of October Revenue Total direct material cost Total direct labor cost Total variable manufacturing overhead cost Total fixed manufacturing overhead cost Total variable marketing cost Total fixed marketing cost Totalfixed administrative cost 567.500 $11.500 54.000 $7,500 $2,000 $12,000 $6,000 $8,000 The firm is considering switching to a new chicken supplier, which would reduce direct material costs by 20% but increase direct labor costs by 30%. Revenues and all other costs would remain the same. The relevant costs for this decision include: None of the other answers is correct Direct materials and direct labor only Total manufacturing costs Direct labor only Direct materials only

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