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Deuce Company currently produces 10,000 units of a key part at a total cost of...

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Accounting

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Deuce Company currently produces 10,000 units of a key part at a total cost of $512,000. Variable costs are $300,000. Of the fixed cost, $140,000 relate specifically to this part. The remaining fixed costs are unavoidable. Another manufacturer has offered to supply the part for $48 per unit. The facilities currently used to manufacture the part could be used to manufacture a new product with an expected contribution margin of $30,000. Alternately, the facilities could be rented out at $60.000. Given all of these alternatives, ___ is Deuce Company s lowest net cost per unit for the part. $30 $ 48 $ 42 $ 44

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