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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 Stereos Inc. are considering purchasing the knobs for the stereos from an outside vendor for $.95 each. The following cost information is provided to assist in the decision:
   Per unit   
   Direct material   $.75
   Direct labor   .05
   Variable overhead   .05
   Fixed overhead   .10
   Total   $.95
What is the relevant per unit cost to make, if the fixed cost does not change by purchasing the knobs from an outside vendor?
A) $.90.
B) $.95.
C) $.85.
D) $.80.
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
Many thanks
wrote...
#3
7 years ago
Extremely happy to help
Thumbs up me, please!
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