Quiche & Tell, Inc., is considering outsourcing one of its many products răther than make this product include: Cost per Quiche Production Manager's Salary $1 $2 Direct Labor $3 Direct Materials $4 Allocated Unavoidable Corporate Overhead Calculate the relevant incremental cost per quiche of making the product.

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 1SEQ: Mario Company is considering discontinuing a product. The costs of the product consist of $20,000...
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Quiche & Tell, Inc., is considering outsourcing one of its many products rather than making it internally. The supplier will charge $15,000 for 3,000 quiches. The costs per quiche to
make this product include:
Cost per Quiche
$1
Production Manager's Salary
Direct Labor
$2
Direct Materials
$3
$4
Allocated Unavoidable Corporate Overhead
Calculate the relevant incremental cost per quiche of making the product.
Transcribed Image Text:Quiche & Tell, Inc., is considering outsourcing one of its many products rather than making it internally. The supplier will charge $15,000 for 3,000 quiches. The costs per quiche to make this product include: Cost per Quiche $1 Production Manager's Salary Direct Labor $2 Direct Materials $3 $4 Allocated Unavoidable Corporate Overhead Calculate the relevant incremental cost per quiche of making the product.
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