Desert Industries manufactures 5,000 units of Part X300 each month for use in production. The...
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Desert Industries manufactures units of Part X each month for use in production. The facilities now being used to produce Part X have fixed monthly overhead costs of $ and a theoretical capacity to produce units per month. If Desert were to buy Part X from an outside supplier, the facilities would be idle and of the fixed costs would continue to be incurred. There are no alternative uses for the production facilities. The variable production costs of Part X are $ per unit. Fixed overhead is allocated based on planned production levels. If Desert Industries continues to use units of Part X each month, it would realize a net benefit by purchasing Part X from an outside supplier only if the suppliers unit price is less than what amount?
Desert Industries manufactures units of Part X each month for use in production. The facilities now being used to produce Part X have fixed monthly overhead costs of $ and a theoretical capacity to produce units per month. If Desert were to buy Part X from an outside supplier, the facilities would be idle and of the fixed costs would continue to be incurred. There are no alternative uses for the production facilities. The variable production costs of Part X are $ per unit. Fixed overhead is allocated based on planned production levels.
If Desert Industries continues to use units of Part X each month, it would realize a net benefit by purchasing Part X from an outside supplier only if the suppliers unit price is less than what amount?
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