(Answered) Grouper corporation currently manufactures a subassembly

Management Studies

Grouper Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows:

Direct materials	$	3.70
Direct labour		27.80
Variable overhead		15.40
Fixed overhead		26.60
Total	$	73.50

Regina Corp. has contacted Grouper with an offer to sell it 5,100 subassemblies for $53.20 each.

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