Blue Spruce Tech produces 60000 iPhone adapters with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $8000 O $34000 $32500 $38500 $43000 15500 4500 10500 None of Blue Spruce's fixed overhead costs can be reduced, but another product could be made that would increase profit by $4500 if the adapters were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the adapters, what is the maximum external price that Blue Spruce would be willing to accept to acquire the 60000 units externally?

Blue Spruce Tech produces 60000 iPhone adapters with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $8000 O $34000 $32500 $38500 $43000 15500 4500 10500 None of Blue Spruce's fixed overhead costs can be reduced, but another product could be made that would increase profit by $4500 if the adapters were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the adapters, what is the maximum external price that Blue Spruce would be willing to accept to acquire the 60000 units externally?

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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