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What amount of cost is avoidable if ted outsources

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Reference no: EM131794066

The Ted Company is considering eliminating the following product line:

Product AXP
  Sales $42,000
  Less variable costs:  
       Raw materials 26,000
       Direct labor 5,800
 
  Contribution margin $10,200
  Less fixed costs:  
       Production costs allocated to products 15,400
 
  Profit (loss) $(5,200)

What amount of cost is avoidable if Ted outsources production of this product?

Reference no: EM131794066

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