Crigui could avoid 4000 in fixed overhead costs if it

Reference no: EM13594678

Crigui Music produces 60,000 CDs on which to record music. The CDs have the following costs:

Direct Materials $11,000
Direct Labor 15,000
Variable Overhead 3,000
Fixed Overhead 7,000

Crigui could avoid $4,000 in fixed overhead costs if it acquires the CDs externally. If cost minimization is the major consideration and the company would prefer to buy the 60,000 units externally, what is the maximum external price that Crigui would expect to pay for the units?

Reference no: EM13594678

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