Cari manufactures a product called YY. Variable manufacturing costs per unit of YY are as...
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Accounting
| Cari manufactures a product called YY. Variable manufacturing costs per unit of YY are as follows: | |||||||||
| Direct materials | $3.00 | ||||||||
| Direct labor | $21.00 | ||||||||
| Variable manufacturing overhead | $10.00 | ||||||||
| Nick Company offered to sell Cari YY at a cheaper price and Cari is seriously considering the offer. | |||||||||
| Cari's requirement of YY per year | 10,000 | units | |||||||
| Nick company's selling price of YY | $50 | ||||||||
| If Cari does not manufacture YY, it can eliminate a fixed overhead cost of | $140,000 | ||||||||
| Cari should: | |||||||||
| A. |
| ||||||||
| B. |
| ||||||||
| C. |
| ||||||||
| D. |
| ||||||||
| E. |
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