manila co manufactures pistons used in its production ofengines. When 10,000 pistons are produced, the costs per unit are:Direct materials $45 Direct manufacturing labor 60 Supervision 20Variable manufacturing overhead 25 Fixed manufacturing overhead 35Total $185 Another company has offered to sell manila co 10,000pistons for $140 per unit. Supervision would be eliminated if thepart was purchased instead of manufactured. Fixed overhead is apart of the overall warehouse rent allocated to the piston makingoperation. What is the relevant cost per piston in this make or buydecision?
Group of answer choices
$105 $130 $150 $155
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manila co manufactures pistons used in its production of engines. When 10,000 pistons are produced, the costs per unit a
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