White Motor Company manufactures 7,500 units of a particular part. The unit cost to manufacture...
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White Motor Company manufactures 7,500 units of a particular part. The unit cost to manufacture this part is as follows:
Direct materials $ 3
Direct labor 4
Variable manufacturing overhead 2
Fixed manufacturing overhead 8
Total $17
Diya Company offered to sell 7,500 units of the part to the White Motor Company for $14 per unit. White has determined that 75 percent of the fixed manufacturing overhead will continue even if the part is purchased from Diya and now must decide whether to accept Diyas offer. The relevant costs per unit of manufacturing the part internally is ..........
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