Solved

Answer the Following Questions Using the Information Below:
Genent's Preserves

Question 167

Multiple Choice

Answer the following questions using the information below:
Genent's Preserves currently makes jams and jellies and a variety of decorative jars used for packaging. An outside supplier has offered to supply all of the needed decorative jars. For this make-or-buy decision, a cost analysis revealed the following avoidable unit costs for the decorative jars:
 Direct materials $0.50 Direct labor 0.06 Unit-related support costs 0.20 Batch-related support costs 0.24 Product-sustaining support costs 0.44 Facility-sustaining support costs 0.56 Total cost per jar $2.00\begin{array} { l r } \text { Direct materials } & \$ 0.50 \\\text { Direct labor } & 0.06 \\\text { Unit-related support costs } & 0.20 \\\text { Batch-related support costs } & 0.24 \\\text { Product-sustaining support costs } & 0.44 \\\text { Facility-sustaining support costs } & 0.56 \\\quad \text { Total cost per jar } & \$ 2.00\end{array}
-The maximum price that Genent's Preserves should be willing to pay for the decorative jars is ________.


A) $0.56 per jar
B) $0.76 per jar
C) $0.44 per jar
D) $2.00 per jar

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents