Reference no: EM132552732

Question 1: Wexford Company makes 100 000 of a certain part that is used in production. The cost to manufacture the part is $25 per unit, which includes $20 in variable costs and $5 in fixed manufacturing overhead. If Wexford buys the part from Dublin Ltd, the cost would be $22 per unit, the facilities could not be used for any other activity and 80% of the fixed manufacturing overhead would continue to be incurred irrespective if the part is manufactured or bought. The relevant costs for manufacturing the part are:

Select one:

$250 000

$240 000

$220 000

$210 000