Wayside, Inc., produces a product that currently sells for $72 per unit.Current production costs per unit include direct materials, $20; direct labor, $24; variable overhead, $10; and fixed overhead, $10.Product engineering has determined that a certain part of the product conversion process could be outsourced for $8 per unit.Raw material costs would not be affected, but direct labor and variable overhead costs would be reduced by 30%.No other opportunity is currently feasible for unused production capacity.How much product cost can Wayside avoid if it outsources part of the conversion process?

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The Answer of Wayside, Inc., produces a product that currently sells for $72 per unit.Current production costs per unit include direct materials, $20; direct labor, $24; variable overhead, $10; and fixed overhead, $10.Product engineering has determined that a certain part of the product conversion process could be outsourced for $8 per unit.Raw material costs would not be affected, but direct labor and variable overhead costs would be reduced by 30%.No other opportunity is currently feasible for unused production capacity.How much product cost can Wayside avoid if it outsources part of the conversion process?