Analysis of Food-borne Disease Outbreaks
March 10, 2021
PSYCH QUIZ for VINBEN
March 10, 2021

At what price would CJP be indifferent to XYZ’s offer?

The CJP Company produces 10,000 units of item S10 annually at a total cost of $190,000. Direct materials $ 20,000 Direct labor 55,000 Variable overhead 45,000 Fixed overhead 70,000 Total $190,000 The XYZ Company has offered to supply 10,000 units of S10 per year for $18 per unit. If CJP accepts the offer, $4 per unit of the fixed overhead would be saved. In addition, some of CJP’s facilities could be rented to a third party for $15,000 per year. At what price would CJP be indifferent to XYZ’s offer? (Points : 1) $17.00$17.50$18.50$19.50


 

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