Cooper Co makes and uses 5,000 components each year in its manufacturing operations. An outside supplier has offered to supply the components to Anderson at $66 per unit. Anderson's production costs are as follows: Direct materials $ 8 Direct labor 32 Variable overhead 12 Fixed overhead (based on normal capacity) 34 If Cooper accepts the order, $8 of fixed overhead per unit will be eliminated

What is the relevant cost to produce one unit?
A) $52
B) $60
C) $78
D) $86


B

Business

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