What is the maximum external price that majestic expect, Accounting Basics

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What is the maximum external price that majestic expect

Majestic Music produces 60,000 CDs on which to record music. The CDs have the following costs:

Direct Materials $15,000
Direct Labor 20,000
Variable Overhead 4,000
Fixed Overhead 9,000

Majestic could avoid $5,000 in fixed overhead costs if it acquires the CDs externally. If cost minimization is the major consideration and the company would prefer to buy the 60,000 units externally, what is the maximum external price that Majestic would expect to pay for the units?

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Accounting Basics: What is the maximum external price that majestic expect

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Accounting Basics: What is the maximum external price that majestic expect

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Ask an Expert for Answer!!

Accounting Basics: What is the maximum external price that majestic expect

Reference No:- TGS079126

Recent Questions Asked Accounting Basics

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Q : Costs according to the proportion of units

Q : Describe moral and ethical issues faced by managers

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Q : What is the maximum external price that majestic expect

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Q : What is the amount of dividends received during the year

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