Quiche & Tell, Inc., is considering outsourcing one of its many products rather than making it internally. The supplier will charge $15,000 for 3,000 quiches. The costs per quiche to make this product include: Cost per Quiche Production Manager's Salary $1 Direct Labor $4 Direct Materials $4 Allocated Unavoidable Corporate Overhead $6 Calculate the relevant incremental cost per quiche of making the product.
Quiche & Tell, Inc., is considering outsourcing one of its many products rather than making it internally. The supplier will charge $15,000 for 3,000 quiches. The costs per quiche to make this product include: Cost per Quiche Production Manager's Salary $1 Direct Labor $4 Direct Materials $4 Allocated Unavoidable Corporate Overhead $6 Calculate the relevant incremental cost per quiche of making the product.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:QUESTION 42
Quiche & Tell, Inc., is considering outsourcing one of its many products rather than making it internally. The supplier will charge $15,000 for 3,000 quiches. The costs per quiche to make this product include:
Cost per Quiche
Production Manager's Salary
$1
Direct Labor
$4
Direct Materials
$4
Allocated Unavoidable Corporate Overhead
$6
Calculate the relevant incremental cost per quiche of making the product.
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