Business, 14.07.2019 07:30 Shobhoob

Acompany manufactures components for use in producing one of its finished products. when 12,000 units are produced, the full cost per unit is $35, separated as follows: direct materials $ 5 direct labor 15 variable overhead 10 fixed overhead 5 a supplier has offered to sell 12,000 components to the company for $37 each. if the company accepts the offer, some of the facilities currently being used to manufacture the components can be rented as warehouse space for $40,000. however, $3 of the fixed overhead currently applied to each component would have to be covered by the company's other products. what is the differential cost to the company of purchasing the components from the supplier?

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Acompany manufactures components for use in producing one of its finished products. when 12,000 unit...

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