Solution-Determine the relevant costs to make the part

Determine the relevant costs to make the part

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Reference no: EM133068745

Question - Holt Pty Ltd presently makes 20,000 units of a certain part to use in production. The cost to make the part is $20 per unit including $15 in variable costs and $5 in fixed overhead applied.

If Holt buys the part from Bricker, the cost would be $18 per unit and the released facilities could not be used for any other activity.

80% of the fixed overhead would continue.

Determine the relevant costs to make the part.

Reference no: EM133068745

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Determine the relevant costs to make the part

Reference no: EM133068745

Reference no: EM133068745

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