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Business, 30.07.2019 06:10 s900005

The talbot corporation makes wheels that it uses in the production of bicycles. talbot's costs to produce 110,000 wheels annually are: direct materials $22,000 direct labor $33,000 variable manufacturing overhead $16,500 fixed manufacturing overhead $59,000 an outside supplier has offered to sell talbot similar wheels for $0.80 per wheel. if the wheels are purchased from the outside supplier, $14,000 of annual fixed overhead could be avoided and the facilities now being used could be rented to another company for $37,700 per year. direct labor is a variable cost. at what purchase price for the wheels would talbot be indifferent between making or buying the wheels?

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The talbot corporation makes wheels that it uses in the production of bicycles. talbot's costs to pr...
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