Harcourt Manufacturing (HM) has the capacity to produce 11,200 fax machines per year. HM currently...
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Harcourt Manufacturing (HM) has the capacity to produce 11,200 fax machines per year. HM currently produces and sells 8,200 units per year. HM currently leases its excess capacity for a rental fee of $55,500. The fax machines normally sell for $220 each. Modem Products has offered to buy 3,200 fax machines from HM for $120 each. Unit-level costs associated with manufacturing the fax machines are $39 each for direct labor and $64 each for direct materials. Product-level and facility-level costs are $62,000 and $77,000, respectively. Based on this information (ignore qualitative characteristics)
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