Royal company manufactures 19000 units of part r-3 each

Reference no: EM13591450

Royal Company manufactures 19,000 units of part R-3 each year for use on its production line. At this level of activity, the cost per unit for part R-3 is:An outside supplier has offered to sell 19,000 units of part R-3 each year to Royal Company for $44.50 per part. If Royal Company accepts this offer, the facilities now being used to manufacture part R-3 could be rented to another company at an annual rental of $428,900. However, Royal Company has determined that $12 of the fixed manufacturing overhead being applied to part R-3 would continue even if part R-3 were purchased from the outside supplier.Required:a.What is the total relevant cost of making the product? (Omit the "tiny_mce_markerquot; sign in your response.)

Reference no: EM13591450

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