Tyler Industries currently manufactures one of its cruclal parts...
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Tyler Industries currently manufactures one of its cruclal parts at a cost of $4.50 per unit. This cost is based on a normal production rate of 50,000 units per yeat. Direct materkals costs are $1,50 per unit and direct labor is $1,00 per unit, incremental overhead costs related to making this part are $50,000 per year, and allocated fived pverhead costs are $50.000 per year. Allocated fixed costs are unavoidable whether the company makes or btys the part. Tyler is considering buying the part from a supplier for a quoted price of $3.70 per unit guaranteed for a three-year period. What is the relevant cost of moking the 50,000 units? $125,000 $185,000 $175.000 522500
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