(Answered) Question - the costs for clark equipment to make a part in

Accounting

Question - The costs for Clark Equipment to make a part in house are displayed below:

Per Unit

Direct Materials $ 3.00

Direct Labor 7.00

Allocated Overhead 10.00

Total Cost $20.00

Moving to an outside vendor will allow Clark Equipment to reduce their overhead costs by 70%. What is the maximum purchase price the company should consider to move to an outside vendor without respect to any other issue? (Present calculations for partial credit). Label your answer.

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