Tasty Bites Produces Corn Chips An Outside Supplier Has Offered to Produce the Corn Chips

question 59

Multiple Choice

Tasty Bites produces corn chips.The cost of one batch is below: $$\begin{array} { l r } \text { Direct materials } & \$ 18 \\\text { Direct labor } & 13 \\\text { Variable overhead } & 11 \\\text { Fixed overhead } & 14\end{array}$$ An outside supplier has offered to produce the corn chips for $30 per batch.How much will Tasty Bites save if it accepts the offer?

• A)$15 per batch
• B)$12 per batch
• C)$26 per batch
• D)$1 per batch

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Definitions:

Monarch

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Nobles

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Baroque Elements

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