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Exhibit 22-2 JD Smith Company Is Operating at Less Than

Question 64

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Exhibit 22-2 JD Smith Company is operating at less than full capacity. The production manager is considering using this excess capacity to make a part that he usually buys. The full costs of manufacturing the part are as follows:
Exhibit 22-2 JD Smith Company is operating at less than full capacity. The production manager is considering using this excess capacity to make a part that he usually buys. The full costs of manufacturing the part are as follows: Up to now, the company has been buying 3,000 units of the part for a total of $115,000. Refer to Exhibit 22-2. In deciding whether or not to make the part, JD Smith Company should use a differential unit cost figure of: A) $33 B) $38 C) $40 D) $46 Up to now, the company has been buying 3,000 units of the part for a total of $115,000.
Refer to Exhibit 22-2. In deciding whether or not to make the part, JD Smith Company should use a differential unit cost figure of:


A) $33
B) $38
C) $40
D) $46

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