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yenne Tech produces 60000 iPhone adapters with the following costs: rect Materials rect Labor riable Overhead ked Overhead $14000 19000 3500 9500 e of Cheyenne's fixed overhead costs can be reduced, but another product could be n 54700 if the adapters were acquired externally. If cost minimization is the major consi

yenne Tech produces 60000 iPhone adapters with the following costs: rect Materials rect Labor riable Overhead ked Overhead $14000 19000 3500 9500 e of Cheyenne's fixed overhead costs can be reduced, but another product could be n 54700 if the adapters were acquired externally. If cost minimization is the major consi

FINANCIAL ACCOUNTING
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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Current Attempt in Progress Cheyenne Tech produces 60000 iPhone adapters with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $14000 O $50700 O $46000 O $41200 O $41300 19000 3500 9500 None of Cheyenne's fixed overhead costs can be reduced, but another product could be made that would increase profit contribution by $4700 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 Cheyenne would be willing to accept to acquire the 60000 units externally?
Transcribed Image Text:Current Attempt in Progress Cheyenne Tech produces 60000 iPhone adapters with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $14000 O $50700 O $46000 O $41200 O $41300 19000 3500 9500 None of Cheyenne's fixed overhead costs can be reduced, but another product could be made that would increase profit contribution by $4700 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 Cheyenne would be willing to accept to acquire the 60000 units externally?
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