100,000 units per year of the B345 gasket are manufactured for use in a final...
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units per year of the B gasket are manufactured for use in a final product. Data concerning the associated unit production costs follow:An outside supplier has offered to provide all of the B gaskets it requires resulting in a reduction of fixed manufacturing overhead costs;assume that direct labor is a variable costa Assuming no alternative use for the facilities presently devoted to production of the B gaskets. If the outside supplier offers to sell the gaskets for $ each, should Kirsten Corporation accept the offer?b Assuming the facilities presently devoted to production of the B gaskets could be used to expand production of another product that would yield an additional contribution margin of $ annually. What is the maximum price Kirsten Corporation should be willing to pay the outside supplier for B gaskets?
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