The Bogart Company produces 6,800 units of item SLM 46 annually at a total cost...
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The Bogart Company produces 6,800 units of item SLM 46 annually at a total cost of $272,000. Direct materials Direct labor Variable overhead Fixed overhead Total $ 27,200 74,800 61,200 108,800 $272,000 The Conner Company has offered to supply all 6,800 units of SIM 46 per year for $35 per unit. If Bogart accepts the offer, $8 per unit of the fixed overhead would be saved. In addition, some of Bogart's leased facilities could be vacated, reducing lease payments by $163,200 per year. At what price would Bogart be indifferent to Conner's offer
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