Quinta Inc. manufactures machine parts for aircraft engines. The CEO is considering an offer from a subcontractor who would provide 2,800 units of product QR128 for a total price of $190,000. If Quinta does not purchase these parts from the subcontractor it must produce them in-house with the following costs: If Quinta produces part QR128 internally, there would be an incremental (and ongoing) overhead cost of $13,000. Calculate the total relevant costs of producing 2,800 units of product QR128.

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The Answer of Quinta Inc. manufactures machine parts for aircraft engines. The CEO is considering an offer from a subcontractor who would provide 2,800 units of product QR128 for a total price of $190,000. If Quinta does not purchase these parts from the subcontractor it must produce them in-house with the following costs: If Quinta produces part QR128 internally, there would be an incremental (and ongoing) overhead cost of $13,000. Calculate the total relevant costs of producing 2,800 units of product QR128.