Plainfield Company manufactures part G for use in its production cycle.The costs per unit for 10,000 units of part G are as follows:
Verona Company has offered to sell Plainfield 10,000 units of part G for $30 per unit.If Plainfield accepts Verona's offer,the released facilities could be used to save $45,000 in relevant costs in the manufacture of part H.In addition,$5 per unit of the fixed overhead applied to part G would be totally eliminated.What alternative is more desirable and by what amount?
A)

Question

Plainfield Company manufactures part G for use in its production cycle.The costs per unit for 10,000 units of part G are as follows: 
Verona Company has offered to sell Plainfield 10,000 units of part G for $30 per unit.If Plainfield accepts Verona's offer,the released facilities could be used to save $45,000 in relevant costs in the manufacture of part H.In addition,$5 per unit of the fixed overhead applied to part G would be totally eliminated.What alternative is more desirable and by what amount? 
A)

Quizplus · Accepted Answer

The Answer of Plainfield Company manufactures part G for use in its production cycle.The costs per unit for 10,000 units of part G are as follows: 
Verona Company has offered to sell Plainfield 10,000 units of part G for $30 per unit.If Plainfield accepts Verona's offer,the released facilities could be used to save $45,000 in relevant costs in the manufacture of part H.In addition,$5 per unit of the fixed overhead applied to part G would be totally eliminated.What alternative is more desirable and by what amount? 
A)

Plainfield Company Manufactures Part G for Use in Its Production