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What is the maximum price aitken corp should pay

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Question - Aitken Corp currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce are:

 

Per unit

Direct materials

$15

Direct labor

10

Variable manufacturing overhead

15

Fixed manufacturing overhead

10

Total unit cost

$55

An outside supplier has offered to provide Aitken Corp with the 20,000 subcomponents. What is the maximum price Aitken Corp should pay the outside supplier?

A) $40

B) $45

C) $50

D) $55

Reference no: EM132158651

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