Jump company currently produces 12,000 units per year of a component part of its products. the cost per unit of this component part is given below: direct materials ................. $16 direct labor ..................... $12 variable overhead ................ $ 7 allocated fixed overhead ......... $ 9 total ............................ $44 an outside supplier has offered to sell jump company 12,000 units of this component part for $38 per unit. accepting the offer will allow jump company to devote more resources to the production of a product that is in high demand. this will let jump company earn additional contribution margin of $63,000 per year. calculate the selling price per unit charged by the outside supplier that would make jump economically indifferent between making and buying the component part
Options:
a) $37
b) $38
c) $39
d) $40
