49. The Camel Company produces 12,000 units of item Roto 454 annually at a total cost of $270,000. Direct materials 40,000 Direct labor 75,000 Variable overhead 65,000 Fixed overhead 90,000 Total 270,000 The Yukon Company has offered to supply 12,000 units of Roto 454 per year for $20 per unit. If Camel accepts the offer, $4 per unit of the fixed overhead would be saved. In addition, some of Camel's facilities could be rented to a third party for $17,000 per year. What are the relevant costs for the "make" alternative? %24 %24

49. The Camel Company produces 12,000 units of item Roto 454 annually at a total cost of $270,000. Direct materials 40,000 Direct labor 75,000 Variable overhead 65,000 Fixed overhead 90,000 Total 270,000 The Yukon Company has offered to supply 12,000 units of Roto 454 per year for $20 per unit. If Camel accepts the offer, $4 per unit of the fixed overhead would be saved. In addition, some of Camel's facilities could be rented to a third party for $17,000 per year. What are the relevant costs for the "make" alternative? %24 %24

Name: 49. The Camel Company produces 12,000 units of item Roto 454 annually
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Description: 49. The Camel Company produces 12,000 units of item Roto 454 annually at a total cost of$270,000.Direct materials40,000Direct labor75,000Variable overhead65,000Fixed overhead90,000Total$270,000The Yukon Company has offered to supply 12,000 units of

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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