Question: The Rock Corp.currently makes 10,600 subcomponents a year. The unit costs to produce are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total
The Rock Corp.currently makes 10,600 subcomponents a year. The unit costs to produce are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $26 22 15 9 $72 An outside supplier has offered to provide Rock with the 10,600 subcomponents at a $80 per unit price. Foed overhead is not avoidable. What is the maximum price Rock should pay the outside supplier? Multiple Choice o $72 189 O O $80 $63
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