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OD 5127 500 increase 2. The Savannah Company manufactures Part No 498 for use in its production line The manufacturing cost per unit for 30,000 units of Pat No 40 is as to Click to see the manufacturing cost per unit) For Savannah to achieve an overall savings of $35.000 the amount of relevant costs that would have to be saved by using the released facilities in the manufacture Parts would be which of the following: (a) SOO 000,0 $275,000. (C) $185,000 or (d) 5330 0007 Show your calculations. What other factors might Savancorde bombong to Cushion? Begin by selecting the labels to calculate the relevant costs that would have to be saved and then enter in de supporting calatons Cost to purchase Total relevant costs of making (per unit) Costs saved by not making units in the offer Total cost saved Extra costs of purchasing outside Minimum savings required Necessary relevant costs to be saved Clear Check awer Help me solve this Etext pages Get more help 6 a C to search Data table - any manufacture mufacturing cost e an overall savi Towing (a) 590, 498 is as follows in the manufacture of Part No 575 vah consider before outsourcing to abels to calculate naking: (per unit) Direct materials $ 3 Variable direct manufacturing labor 25 Variable manufacturing overhead 8 Fixed manufacturing overhead allocated 19 $ 55 Total manufacturing cost per unit The Cushion Company has offered to sell 30,000 units of Part No 498 to Savannah for $52 per unit. Savannah will make the decision to buy the part from Cushion if there is an overall savings of at least $35,000 for Savannah If Savannah accepts Cushion's offer $8 per unit of the fixed overhead allocated would be eliminated. Furthermore, Savannah has determined that the released facilities could be used to save relevant costs in the manufacture of Part No: 575 aking asing outside quired ests to be saved Print Done

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