All-Alone Inc has always manufactured its own parts. The costs per unit for a special part for its main product are as follows: direct materials, $1; direct labor, $10; variable overhead, $5; and fixed overhead, $8. Let-Me-Help Company has contacted All-Alone with an offer to sell them 5,000 of the special parts for $22 each. All-Alone will eliminate $25,000 of fixed overhead if it accepts the proposal. What are the relevant internal costs for All-Alone?
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Denger
![All-Alone Inc has always manufactured its own parts. The costs per unit for a special part for its main product are as follows: direct materials, $1; direct labor,
$10; variable overhead, $5; and fixed overhead, $8.
Let-Me-Help Company has contacted All-Alone with an offer to sell them 5,000 of the special parts for $22 each. All-Alone will eliminate $25,000 of fixed
overhead if it accepts the proposal.
What are the relevant internal costs for All-Alone?
Multiple Choice
О
$80,000
none of the answers are correct
$125,000
$140,000
$105,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F30a62bac-85b5-40c6-ad5f-445ae2787cf2%2Fde8462cd-c711-4a3f-a001-9c50fbc72014%2Fb9nut94_processed.jpeg&w=3840&q=75)
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