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Ortiz Co If Ortiz Buys the Part from an Outside Supplier, $40,000

question 49

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Use the following information for questions
Ortiz Co. produces 5,000 units of part A12E. The following costs were incurred for that level of production:  Direct materials $55,000 Direct labor 160,000 Variable overhead 75,000 Fixed overhead 175,000\begin{array} { l r } \text { Direct materials } & \$ 55,000 \\\text { Direct labor } & 160,000 \\\text { Variable overhead } & 75,000 \\\text { Fixed overhead } & 175,000\end{array} If Ortiz buys the part from an outside supplier, $40,000 of the fixed overhead is avoidable.
-What is the relevant cost per unit of part A12E?

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