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Author Question: Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit ... (Read 53 times)

jc611

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

Direct materials$51.00
Direct labor43.00
Variable overhead38.00
Fixed overhead33.00
Total$165.00

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?
◦ $929,000
◦ $1,029,000
◦ $1,409,000
◦ $1,739,000


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Marked as best answer by jc611 on Mar 6, 2021

ririgirl15

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jc611

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)


adammoses97

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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