Multiple Choice
Answer the following question(s) using the information below.Mable's Engine Company manufactures part Z92 used in several of its engine models.Monthly production costs for 1,000 units are as follows:
Mable's Engine Company has the option of purchasing the part from an outside supplier at $61 per unit.It is estimated that all of the fixed overhead costs assigned to Z92 will remain if the company purchases Z92 from the outside supplier.
-If Mable's Engine Company accepts the offer from the outside supplier, the monthly avoidable costs (costs that will no longer be incurred) total
A) $59,000.
B) $38,000.
C) $64,000.
D) $15,000.
E) $21,000.
Correct Answer:

Verified
Correct Answer:
Verified
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