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Growe Company Manufactures Sewing Machines and Requires 30,000 Units of a Component

Question 89

Multiple Choice

Growe Company manufactures sewing machines and requires 30,000 units of a component that is used in the manufacturing process. If Growe buys the part from Zigler Brothers, the plant will be idle. Of the fixed, 55% overhead will continue regardless of the decision. The cost to buy the part from Zigler is $46. The unit cost to make the part is: Growe Company manufactures sewing machines and requires 30,000 units of a component that is used in the manufacturing process. If Growe buys the part from Zigler Brothers, the plant will be idle. Of the fixed, 55% overhead will continue regardless of the decision. The cost to buy the part from Zigler is $46. The unit cost to make the part is: Relevant costs to make the part are A) $1,320,000 B) $1,380,000 C) $1,620,000 D) $1,455,000 Relevant costs to make the part are


A) $1,320,000
B) $1,380,000
C) $1,620,000
D) $1,455,000

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