Olihe Cop currenty makes 9,300 subcomponents a year in one of its factories. The Per unit 25 $34 Direct materials 29 Direct labor 24 Fariable manufacturing overhead Fized manufactoring overhead 12 Total unit cost $99 untr at a $97 per unit price. Fixed overhead is not avoidable. What is

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Seved
Olihe Corp curenty makes 9.300 subcomponents a year in one of its factorles. The unit costs to produce are:
Per unit
$34
25
Direct materials
29
Direct labor
24
Fariable manufacturing overhead
Fired manufactaring overhead
12
$99
Total unit cost
An atside suppler has offered to provide Olive Corp. with the 9,300 subcomponents at a $97 per unit price. Fixed overhead is not avoidable. What is
the mexinum price Olive Carp. should pay the outside supplier?
Mtcle Ohoice
$87
$97
$99
Transcribed Image Text:Seved Olihe Corp curenty makes 9.300 subcomponents a year in one of its factorles. The unit costs to produce are: Per unit $34 25 Direct materials 29 Direct labor 24 Fariable manufacturing overhead Fired manufactaring overhead 12 $99 Total unit cost An atside suppler has offered to provide Olive Corp. with the 9,300 subcomponents at a $97 per unit price. Fixed overhead is not avoidable. What is the mexinum price Olive Carp. should pay the outside supplier? Mtcle Ohoice $87 $97 $99
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