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XYZ Company produces high-end espresso machines. An outside supplier has offered to produce...

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Accounting

XYZ Company produces high-end espresso machines. An outside supplier
has offered to produce the 5,000 espresso machines needed each year. XYZ
provides the following per-unit cost information for producing espresso
machines, assuming a production level of 5,000 units per year:
If espresso machine production is outsourced:
The product line supervisor will no longer be needed
The special equipment will be discarded
The costs that make up allocated general overhead are expected to fall by
$18,000 total
What is the maximum price per machine that xYZ should be willing to pay
the supplier to produce the espresso machines? (Round to the nearest dollar
and cents.)
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