Blossom Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures...
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Blossom Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used in each of its systems. Based on an annual production of 40,390 timers, the company has calculated the following unit costs. Direct fixed costs include supervisory and clerical salaries and equipment depreciation Direct materials Direct labor Variable manufacturing overhead Direct fixed manufacturing overhead Allocated fixed manufacturing overhead 9 $12 4 10 (30% salaries, 70% depreciation) Total unit cost $42 Clifton Clocks has offered to provide the timer units to Blossom at a price of $34 per unit. If Blossom accepts the offer, the current timer unit supervisory and clerical staff will be laid off. (a1) E] Your answer is correct. Calculate the total relevant cost to make or buy the timer units. (Round answers to 0 decimal places, e.g.5,250.) Make Buy 1050140 1373260 Total relevant cost Click if you would like to Show Work for this question: Open Show Work
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