Justin Industries can produce 100 units of a necessary component part with the following costs:...
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Justin Industries can produce 100 units of a necessary component part with the following costs: Direct Materials $40,000 Direct Labor 23,000 Variable Overhead 42,000 Fixed Overhead 30,000 If Justin Industries purchases the components externally, $12,000 of the fixed costs can be avoided. At what external price would Justin be indifferent between buy versus make? A. $105,000 C. $117,000 B. $112,000 D. $123,000 E. $128,000
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