Rubium Micro Devices Currently Manufactures a Subassembly for Its Main

question 97

Multiple Choice

Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows:

Crayola Technologies Inc. has contacted Rubium with an offer to sell 10,000 of the subassemblies for $138.00 each. Rubium will eliminate $89,000 of fixed overhead if it accepts the proposal. What are the relevant costs for Rubium?

• A) $929,000
• B) $1,029,000
• C) $1,409,000
• D) $1,739,000