Exercise 10-17 Name:
Insert your answers in the gray-shaded cells. If an
answer is incorrect, the word “wrong” will appear.
a. Relevant cost to manufacture 4.60$
Relevant cost to buy 4.00
Difference 0.60$
x Units required annually 120,000
Advantage to buying 72,000$
b. Relevant cost to buy: 4.00$
Avoidable variable cost (3.48)
Minimum avoidable fixed cost 0.52$ per unit
Solution