Tasty Bites Produces Corn Chips An Outside Supplier Has Offered to Produce the Corn Chips

Tasty Bites produces corn chips. The cost of one batch is below: $$\begin{array} { l r } \text { Direct materials } & \$ 18 \\\text { Direct labor } & 13 \\\text { Variable overhead } & 11 \\\text { Fixed overhead } & 14\end{array}$$ An outside supplier has offered to produce the corn chips for $30 per batch. How much will Tasty Bites save if it accepts the offer?

A) $15 per batch
B) $12 per batch
C) $26 per batch
D) $1 per batch

Correct Answer:

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