is products. The costs associated with the production of Garndo Company produces a part that it 11,0
is products. The costs associated with the production of Garndo Company produces a part that it 11,000 units of this part are as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead 50,000 $174.000 of the fixed factory overhead costs, $9,000 is avoidable. Required a. Assuming there is no alternative use for the facilities, should Garrido Company take advantage of an offer from a supplier who is willing to sell Garrido Company 11,000 units of the same part for $12.50 per unit? Would your answer to Part A change if the facilities could be rented for $10,000 a year? ANSWERS WITHOUT CALCULATIONS WILL NOT BE ACCEPTED Attach File Browse My Computer Browse Content Collection
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