Answered

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An outside supplier offers to provide Factor with all the units it needs at $44.45 per unit. If Factor buys from the supplier, the company will still incur 70% of its overhead. Factor should choose to:

Sagot :

Cricetus

Answer:

Factor must opt to agree as well as purchase the deal from the provider. A further explanation is provided below.

Explanation:

The given problem seems to be incomplete. Find the attachment of the complete question below.

Given:

Direct material,

= $8.70  

Direct labor,

= 24.70  

Overhead,

= 43.50

Now,

If the offer is accepted, the cost per unit will be:

= [tex]44.45 + (43.50\times 70 \ percentage)[/tex]

= [tex]44.45 + 30.45[/tex]

= [tex]74.90[/tex] ($)

Thus the above is the correct answer.

View image Cricetus
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