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Revved Up Toys manufactures a computer chip used in the production of remote control cars. When 6,000 cars are produced, the costs per part are:
Sam's Associates has offered to sell Revved Up Toys 6,000 parts for $5.75 each. If Sarah accepts the offer, $1.00 of the fixed manufacturing overhead costs can be eliminated.
a. What is the relevant per unit cost to manufacture the part?
b. Which alternative is best for Revved Up Toys and by how much?
Gel Polish
A durable type of nail polish cured under a UV or LED light, known for its high gloss and long-lasting wear.
Hemoglobin Level
A measurement of the concentration of hemoglobin in the blood, which is crucial for carrying oxygen from the lungs to the rest of the body.
Intensive Care Unit
A specialized hospital department that provides intensive treatment medicine for patients who are in critical condition.
Rectal
Pertaining to the rectum, the final section of the large intestine, involved in the storage and expulsion of feces.
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