Soliman Corporation makes a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,500 units, are as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost The foxed overhead costs are unavoidable. $4.30 $4.00 $3.40 OA. Buy from Suri and save $1.50 per unit OB. Make the part and save 56 60 per unit OC. Make the part and save $2.60 per unit OD. Make the part and save $10 60 per unit $1.10 $12.80 Blue Company has offered to sell 6.500 units of the same part to Soliman Corporation for $14.30 per unit Assuming the corporation has no other use for its facilities, what should Soliman Corporation do? CETTS

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter5: Process Costing
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Soliman Corporation makes a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,500 units, are
as follows
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Total cost
The foxed overhead costs are unavoidable.
$4.30
$4.00
$3.40
OA. Buy from Suri and save $1.50 per unit
OB. Make the part and save 56 60 per unit
OC. Make the part and save $2.60 per unit
OD. Make the part and save $10 60 per unit
$1.10
$12.80
Blue Company has offered to sell 6.500 units of the same part to Soliman Corporation for $14.30 per unit Assuming the corporation has no other use for its facilities, what should
Soliman Corporation do?
GETES
Transcribed Image Text:Soliman Corporation makes a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,500 units, are as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost The foxed overhead costs are unavoidable. $4.30 $4.00 $3.40 OA. Buy from Suri and save $1.50 per unit OB. Make the part and save 56 60 per unit OC. Make the part and save $2.60 per unit OD. Make the part and save $10 60 per unit $1.10 $12.80 Blue Company has offered to sell 6.500 units of the same part to Soliman Corporation for $14.30 per unit Assuming the corporation has no other use for its facilities, what should Soliman Corporation do? GETES
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