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Melboume Corporation has traditionally made a subcomponent of its major product. Annual production of 30,000...

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Accounting

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Melboume Corporation has traditionally made a subcomponent of its major product. Annual production of 30,000 subcomponents results in the following costs: Melbourne has received an offer from an outside supplier who is willing to provide the 30,000 units of the subcomponent each year at a price of $28 per unit. There would be no effect of this decision on the total fixed manufacturing overhead. 21. The total relevant coss of making the subcomponent would be: A) $840,000 B) $200,000 C) $760,000 D) $640,000

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