Peter CoMakes and Uses 5,000 Components Each Year in Its Manufacturing

question 70

Multiple Choice

Peter Co.makes and uses 5,000 components each year in its manufacturing operations.An outside supplier has offered to supply the components to Peter at $66 per unit.Peter's production costs are as follows: If Peter accepts the order,$8 of fixed overhead per unit will be eliminated.
What is the per unit relevant cost of producing the product in this decision?

• A)$86
• B)$52
• C)$78
• D)$60

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