70.2K

Verified Solution

Link Copied!

Direct materials Direct labor Variable overhead Quirch Inc. manufactures machine parts for aircraft engines. The CEO, Chucky Valters, was considering an offer from a subcontractor that would provide 2,400 units of product PQ107 for Valters for a price of $150,000. If Quirch does not purchase these parts from the subcontractor it must produce them in- house with the following unit costs: Multiple Choice O $149,000. In addition to the above costs, if Quirch produces part PQ107, it would have a retooling and design cost of $9,800. The relevant costs of producing 2,400 units of product PQ107 internally are: $129,800. www.pus vs. Cost per Unit $31 19 8 $150,000. Exit 7 of 15 www Next > Submit

Quirch inc, monufactures machine parts for aircraf engines. The CEO, Chuchy Volters, was considering an offer from a wabcontractor that would provide 2,400 units of product PQ107 for Valters for a price of $150,000. Ir Quirch does not purchase these pacts fiom the subcontractor it must produce ghern in: house with the following unit costs: In addition to the above costs, if Quirch produces part PQ107, it would have a retooling and design cost of $9,800. The relevant costs of producing 2,400 units of product PQ107 internally are: Multiple Choice $149,000 $129800 $150,000

Answer & Explanation Solved by verified expert

See Answer