Answer:
The correct answer is $32.6.
Explanation:
According to the scenario, computation of the given data are as follow:-
Variable production cost per unit = $30
If X300 buy from outside than variable cost(avoidable fixed cost) = ($65,000 × 20 ÷ 100) ÷ 5,000 units
= $2.6 per unit
We can calculate the total cost by using following formula :-
Total cost = Variable production cost per unit + Avoidable fixed cost
= $30 + $2.6
= $32.6
According to the analysis if outside supplier has less than $32.6 unit price only then its profitable for company.