The CJP Company produces 10,400 units of item S10 annually at a total cost of...
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The CJP Company produces 10,400 units of item S10 annually at a total cost of $202,000. Direct materials $ 22,000 Direct labor 59,000 Variable overhead 47,000 Fixed overhead 74,000 Total $ 202,000 The XYZ Company has offered to supply 10,400 units of S10 per year for $20.00 per unit. If CJP accepts the offer, $6.00 per unit of the fixed overhead would be saved. In addition, some of CJP's facilities could be rented to a third party for $17,000 per year. What are the relevant costs for the "make" alternative?
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