Business, 28.07.2021 01:00 yaya111601
Fruit Car Company manufactures 10 fruit themed cars per month. A compact media center is included in each car. Fruit Car Company manufactures the media center in-house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $275, and the fixed costs are $39,000 per month. The CEO, wishes to increase operating income by $5000. He has an offer from a foreign producer to provide the media centers at a contract cost of $325 per unit. The required savings in fixed costs in order to achieve his objective would be .
a. 52800.
b. $200.
c. 51200.
d. $1000.
Answers: 2
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Fruit Car Company manufactures 10 fruit themed cars per month. A compact media center is included in...
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