leap company has collected the following information: cost to buy one unit $24 production costs...

60.1K

Verified Solution

Question

Accounting

Leap Company has collected the following information: Cost to buy one unit $24 Production costs per unit: Direct materials $10 Direct labor $8 Variable manufacturing overhead $1 Total fixed manufacturing overhead $95,000 What level of production is needed for Leap to be indifferent between making or buying the part, assuming it can eliminate $75,000 of fixed costs? Select one: A. 15,000 units B. 13,000 units C. 12,500 units D. 16,250 units

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students