[C10MCQB221 ABC corporation produces customized items for the car industry. The company is thinking about outsourcing th

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C10mcqb221 Abc Corporation Produces Customized Items For The Car Industry The Company Is Thinking About Outsourcing Th 1 (29.64 KiB) Viewed 35 times

[C10MCQB221 ABC corporation produces customized items for the car industry. The company is thinking about outsourcing the production of a particular item to a specialized supplier. The management has developed the following cost figures: Current Company Operations (Inhouse) Overhead 34,000 $ Labor 5.5 $/per unit Materials 3 S/per unit Administration 26,000 $ Supplier (outsourcing) Purchase price Administration costs Inspection costs Transportation costs 9 S/per unit 24,000 S 32,000 $ 0.5 $/per unit The annual volume is 2,000 units. What is the cost Cl of producing inhouse & cost C2 of outsourcing? a. (C1=80,000, C2-79,000) Ob.(C1=78.000 : C2=77,000) Oc (C1-77,000: C2-75,000) O d.(C1=74,000 : C2=73,000)