Homework Answers
Correct answer is a): $1.65
Working for your refrence
| Cost of Making the part | |
| Variable cost | $90,000.00 |
| Fixed cost | $60,000.00 |
| Total | $150,000.00 |
|
Fixed Cost when buying the part ( 60000X30%)= $18000 |
| Total Cost making= total cost cost Buying |
| $150000=Fixed Cost + Variable cost |
| $150000=18000+Variable Cost |
| Variable cost =132000 |
| Variable cost per Unit = 132000/80000 |
| =$1.65 |
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#2
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#2
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