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What is the maximum external price

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Reference no: EM133079175

Question - Concord Music produces 60500 blank CDs on which to record music. The CDs have the following costs:

Direct Materials $11500

Direct Labour 15500

Variable Overhead 2700

Fixed Overhead 7500

Concord could avoid $4000 in fixed overhead costs if it acquires the CDs externally. If cost minimization is the major consideration and the company would prefer to buy the 60500 units externally, what is the maximum external price that Concord would expect to pay for the units?

Reference no: EM133079175

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