Rashids Manufacturing Company can make 100 units of a necessary component part with the following...
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Accounting
Rashids Manufacturing Company can make 100 units of a necessary component part with the following costs:
Direct Materials $120,000
Direct Labor 25,000
Variable Overhead 45,000
Fixed Overhead 30,000
If Rashids Manufacturing Company purchases the component externally, $20,000 of the fixed costs can be avoided. At what buying cost for the 100 units is the company indifferent between making or buying?
$210,000
$200,000
$190,000
$220,000
i need step by step answer
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