During 2010, America, Inc., produced, among other products, 9,300 cameras, incurring the following unit costs:...
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Accounting
During 2010, America, Inc., produced, among other products, 9,300 cameras, incurring the following unit costs: $5 in direct materials, $3 in direct labor, $2 in variable overhead, $4 in fixed overhead, $0.50 in variable selling and administrative expenses, and $1 in fixed selling and administrative expenses. An outsider had offered to produce the cameras for $12 each. Assuming that the factory space would have been idle otherwise, acceptance of the outside offer would have
A. lost the company $9,300.
B. saved the company $33,950.
C. saved the company $18,950
D. lost the company $13,950.
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