(Answered) Question - quiche amp tell inc is considering outsourcing

Accounting

Question - Quiche & Tell, Inc., is considering outsourcing one of its many products rather than making it internally. The supplier will charge $15,000 for 3,000 quiches. The costs per quiche to make include:

Cost per Quiche

Allocated Corporate Overhead-$1

Direct Labor-$2

Direct Materials-$1

Manager's Salary-$3

If Quiche & Tell outsources, what is the savings (or loss) per quiche?

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