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Cotton Corp

Question 19

Multiple Choice

Cotton Corp.currently makes 10,000 subcomponents a year in one of its factories.The unit costs to produce are: Cotton Corp.currently makes 10,000 subcomponents a year in one of its factories.The unit costs to produce are: An outside supplier has offered to provide Cotton Corp.with the 10,000 subcomponents at an $84.50 per unit price.Fixed overhead is not avoidable.What is the maximum price Cotton Corp.should pay the outside supplier? A) $65.00 B) $84.50 C) $91.00 D) $58.50 An outside supplier has offered to provide Cotton Corp.with the 10,000 subcomponents at an $84.50 per unit price.Fixed overhead is not avoidable.What is the maximum price Cotton Corp.should pay the outside supplier?


A) $65.00
B) $84.50
C) $91.00
D) $58.50

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