Daily Kneads, Inc., is thinking about having one of its products made by a supplier. The supplier willl charge $6,000 for 1,000 units. Currently, Daily Kneads' costs to make 1,000 units of this product are as follows: Cost per unit Cost of 1,000 units Direct labor $4 $4,000 Direct materials $1 $1,000 $2,000 Allocated Unavoidable Fixed Costs $2 Total costs $7 $7,000 Calculate the relevant incremental cost of making each unit: $ per unit

Daily Kneads, Inc., is thinking about having one of its products made by a supplier. The supplier willl charge $6,000 for 1,000 units. Currently, Daily Kneads' costs to make 1,000 units of this product are as follows: Cost per unit Cost of 1,000 units Direct labor $4 $4,000 Direct materials $1 $1,000 $2,000 Allocated Unavoidable Fixed Costs $2 Total costs $7 $7,000 Calculate the relevant incremental cost of making each unit: $ per unit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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