What cost would carolina need to purchase the cup holders

Reference no: EM133654102

Question: Carolina Beach Chair Inc. is considering buying the cup holders for the beach chairs they manufacture, instead of producing them. Carolina's costs for each cup holder include Direct Materials $0.85, Direct Labor $1.30, Variable Factory Overhead $0.90, Fixed Factory Overhead $0.60. At what cost would Carolina need to purchase the cup holders to save $0.10, instead of manufacturing them?

Reference no: EM133654102

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