What are the relevant costs for rubium

Reference no: EM131972094

Problem

Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows:

Direct materials $ 45.00
Direct labor 35.00
Variable overhead 33.00
Fixed overhead 20.00
Total $133.00

Crayola Technologies Inc. has contacted Rubium with an offer to sell 5,000 of the subassemblies for $135.00 each. Rubium will eliminate $65,000 of fixed overhead if it accepts the proposal.

What are the relevant costs for Rubium?

Reference no: EM131972094

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