Tom Terry manufactures an intricately detailed plastic and metal toy airplane. The following unit cost data pertain to the unit cost of an airplane:
Direct materials $ 5.00
Direct labor 12.00
Manufacturing overhead (50% fixed) 10.00
Total manufacturing costs $27.00
Please show work:
Assume that the airplane can be purchased from an outside supplier. What is the relevant unit cost for this make-or-buy decision?
e. none of the above. Please provide the correct answer.
<br>Actually we are to find the variable cost of an ...
What is the relevant unit cost for this make-or-buy decision?