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Home Q & A Board Other Fields Homework Help Business Accounting
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KarenSmith KarenSmith
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7 years ago
The managers of Desks Inc. are considering purchasing the handles for the desks from an outside vendor for $4.50 each. The following cost information is provided to assist in the decision:
   Per unit   
   Direct material   $1.75
   Direct labor   1.45
   Variable overhead   .70
   Fixed overhead   1.10
   Total   $5.00
What is the relevant per unit cost to make, if the fixed cost does not change by purchasing the handles from an outside vendor?
A) $1.10.
B) $5.00.
C) $0.
D) $3.90.
Textbook 
Survey of Accounting: Making Sense of Business

Survey of Accounting: Making Sense of Business


Edition: 1st
Author:
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suryoyosuryoyo
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7 years ago
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KarenSmith Author
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#2
7 years ago
THANKS
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#3
7 years ago
Thanks for the feedback
Thumbs up me, please!
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